In: Accounting
Post transactions from August 1 through December 31 and adjusting entries on December 31 to T-accounts.
Jul. | 1 | Sell $17,000 of common stock to Suzie. | ||
Jul. | 1 | Sell $17,000 of common stock to Tony. | ||
Jul. | 1 | Purchase a one-year insurance policy for $4,440 ($370 per month) to cover injuries to participants during outdoor clinics. | ||
Jul. | 2 | Pay legal fees of $1,900 associated with incorporation. | ||
Jul. | 4 | Purchase office supplies of $2,000 on account. | ||
Jul. | 7 | Pay for advertising of $380 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. | ||
Jul. | 8 | Purchase 10 mountain bikes, paying $12,700 cash. | ||
Jul. | 15 | On the day of the clinic, Great Adventures receives cash of $2,400 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 $2,700. | ||
Jul. | 24 | Pay $950 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. | ||
Jul. | 30 | Great Adventures receives cash of $5,500 in advance from 50 kayakers for the upcoming kayak clinic. | ||
Aug. | 1 | Great Adventures obtains a $49,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31. | ||
Aug. | 4 | The company purchases 14 kayaks, paying $30,000 cash. | ||
Aug. | 10 | Twenty additional kayakers pay $3,200 ($160 each), in addition to the $5,500 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. | ||
Aug. | 17 | Tony conducts a second kayak clinic, and the company receives $10,700 cash. | ||
Aug. | 24 | Office supplies of $2,000 purchased on July 4 are paid in full. | ||
Sep. | 1 | To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,240 ($270 per month) in advance. | ||
Sep. | 21 | Tony conducts a rock-climbing clinic. The company receives $14,600 cash. | ||
Oct. | 17 | Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $19,300 cash. | ||
Dec. | 1 | Tony decides to hold the company’s first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $670. | ||
Dec. | 5 | To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race. | ||
Dec. | 8 | The company pays $1,300 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. | ||
Dec. | 12 | The company purchases racing supplies for $2,200 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. | ||
Dec. | 15 | The company receives $26,800 cash from a total of forty teams, and the race is held. | ||
Dec. | 16 | The company pays Victor’s salary of $2,400. | ||
Dec. | 31 | The company pays a dividend of $4,800 ($2,400 to Tony and $2,400 to Suzie). | ||
Dec. | 31 | Using his personal money, Tony purchases a diamond ring for $3,800. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! |