Question

Tony and Suzie graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.
  
On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures.
  
Jul. 1 Sell $10,000 of common stock to Suzie.
Jul. 1 Sell $10,000 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $4,200 ($350 per month) to cover injuries to participants during outdoor clinics.
Jul. 2 Pay legal fees of $1,100 associated with incorporation.
Jul. 4 Purchase office supplies of $1,300 on account.
Jul. 7 Pay for advertising of $370 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 the day of the clinic.
Jul. 8    Purchase 10 mountain bikes, paying $11,200 cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,600 from 60 bikers. Tony conducts the mountain biking clinic.
Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $4,150.
Jul. 24 Pay for advertising of $840 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $120 in advance or $170 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $8,400 in advance from 70 kayakers for the upcoming kayak clinic.

1. Record each transaction in July. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
July 01, 2018

Answer 1

Journal Entries in the books of Great Adventures Inc.
Date	Account Title	Debit ($)	Credit ($)
2018	Cash a/c Dr.	20,000
July,1	To Common Stock a/c		20,000
	(Being sale of common stock to Suzie and Tony)
July,1	Prepaid Insurance a/c Dr.	4,200
	To Cash a/c		4,200
	(Being purchase a one-year insurance policy)
July,2	Legal Fees a/c Dr.	1,100
	To Cash a/c		1,100
	(Being legal fees paid)
July,4	Office Supplies a/c Dr.	1,300
	To Accounts Payable a/c		1,300
	(Being office supplies purchased on account)
July,7	Advertising Expense a/c	370
	To Cash a/c		370
	(Being advertising expenses paid in cash)
July,8	Mountain Bikes a/c Dr.	11,200
	To Cash a/c		11,200
	(Being 10 mountain bikes purchased)
July,15	Cash a/c Dr.	3,600
	To Biking Clinic		3,600
	(Being Cash received from 60 bikers)
July,22	Cash a/c Dr.	4,150
	To Biking Clinic		4,150
	(Being cash received from another mountain biking clinic)
July,24	Advertising Expenses a/c Dr.	840
	To Cash a/c		840
	(Being advertising expenses paid)
July,30	Cash a/c Dr.	8,400
	To Unearned Revenue		8,400
	(Being cash receive in advance for the upcoming Kayak clinic)