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question tony and suzie graduate from college in may 2015 and begindeveloping their 4282550


Tony and Suzie graduate from college in May 2015 and begindeveloping their new business. They begin by offering clinics forbasic outdoor activities such as mountain biking or kayaking. Upondeveloping a customer base, they’ll hold their first adventureraces. These races will involve four-person teams that race fromone 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 foroutdoor enthusiasts.


          OnJuly 1, 2015, Tony and Suzie organize their new company as acorporation, Great Adventures Inc. The articles of incorporationstate that the corporation will sell 32,000 shares of common stockfor $1 each. Each share of stock represents a unit of ownership.Tony and Suzie will act as co-presidents of the company. Thefollowing business activities occur during July.



Jul. 1

Sell $16,000 of common stock to Suzie.


Sell $16,000 of common stock to Tony.


Purchase a one-year insurance policy for $6,000 ($500 per month)to cover injuries to participants during outdoor clinics.


Pay legal fees of $1,200 associated with incorporation.


Purchase officesupplies of $1,700 on account.


Pay for advertising of $260 to a local newspaper for an upcomingmountain biking clinic to be held on July 15. Attendees will becharged $50 the day of the clinic.


Purchase 10mountain bikes, paying $10,800 cash.


On the day of the clinic, Great Adventures receives cash of$3,500 from 70 bikers. Tony conducts the mountain bikingclinic.


Because of the success of the first mountain biking clinic, Tonyholds another mountain biking clinic and the company receives$4,100.


Pay for advertising of $830 to a local radio station for akayaking clinic to be held on August 10. Attendees can pay $150 inadvance or $200 on the day of the clinic.


Great Adventures receives cash of $7,500 in advance from 50kayakers for the upcoming kayak clinic.

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