On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following

transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31.
  
Aug. 1 Great Adventures obtains a $40,000 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 $18,700 cash.
Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $6,000 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 $11,900 cash.
Aug. 24 Office supplies of $1,900 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, purchasing a one-year rental policy for $3,120 ($260 per month).
Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,900 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 $19,900 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 $640.
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 $1,100 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 $2,400 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 $25,600 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 $4,400 ($2,200 to Tony and $2,200 to Suzie).
Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,700. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married!  
 
The following information relates to year-end adjusting entries as of December 31, 2018.
  
a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,100.
b. Six months’ worth of insurance has expired.
c. Four months’ worth of rent has expired.
d. Of the $1,900 of office supplies purchased on July 4, $400 remains.
e. Interest expense on the $40,000 loan obtained from the city council on August 1 should be recorded.
f. Of the $2,400 of racing supplies purchased on December 12, $160 remains.
g. Suzie calculates that the company owes $13,600 in income taxes.
  
Assume the following ending balances for the month of July.

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