Adventure Elements provides outdoor activities including ropes courses, rock climbing, and zip-lining. The company offers a unique experience for team building activities, camps for youth, and anyone seeking outdoor adventure.

answer

watching

328

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

esskeetitLv10

9 Mar 2023

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

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, theyâll 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 transactions occur from July 1 through December 31. 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 $5,400 ($450 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,000 associated with incorporation. Jul. 4 Purchase office supplies of $1,100 on account. Jul. 7 Pay for advertising of $340 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $10,900 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4,200 from 70 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 $4,550. Jul. 24 Pay for advertising of $820 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 $6,000 in advance from 50 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $38,000 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 $20,400 cash. Aug. 10 Twenty additional kayakers pay $3,400 ($170 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 $10,600 cash. Aug. 24 Office supplies of $1,100 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 $13,400 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 $18,500 cash. Dec. 1 Tony decides to hold the companyâs 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 $520. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 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 $2,900 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 $20,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victorâs salary of $1,200. 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 $3,900. 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. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,260. Six monthsâ worth of insurance has expired. Four monthsâ worth of rent has expired. Of the $1,100 of office supplies purchased on July 4, $250 remains. Interest expense on the $38,000 loan obtained from the city council on August 1 should be recorded. Of the $2,900 of racing supplies purchased on December 12, $190 remains. Suzie calculates that the company owes $13,800 in income taxes.

General ledger with adjusting entries must be done

azurefox744

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.

The articles of incorporation state that the corporation will sell 33,000 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 $16,500 of common stock to Suzie.
Jul. 1 Sell $16,500 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $5,880 ($490 per month) to cover injuries to participants during outdoor clinics.
Jul. 2 Pay legal fees of $1,800 associated with incorporation.
Jul. 4 Purchase office supplies of $1,400 on account.
Jul. 7 Pay for advertising of $290 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 the day of the clinic.
Jul. 8 Purchase 10 mountain bikes, paying $11,900 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 $2,800.
Jul. 24 Pay for advertising of $690 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $130 in advance or $180 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $10,400 in advance from 80 kayakers for the upcoming kayak clinic.
Aug. 1 Great Adventures obtains a $41,000 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 $21,000 cash.
Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $10,400 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 $12,500 cash.
Aug. 24 Office supplies of $1,400 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 $3,360 ($280 per month).
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 $19,600 cash.
Dec. 1 Tony decides to hold the companyâs 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 $510.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 $1,600 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 $2,500 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 $20,400 cash from a total of forty teams, and the race is held.Dec. 16 The company pays Victorâs salary of $2,400.
Dec. 31 The company pays a dividend of $4,500 ($2,250 to Tony and $2,250 to Suzie).
Dec. 31 Using his personal money, Tony purchases a diamond ring for $5,000. 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 $7,000.
b. Six monthsâ worth of insurance has expired.
c. Four monthsâ worth of rent has expired.
d. Of the $1,400 of office supplies purchased on July 4, $360 remains.
e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded.
f. Of the $2,500 of racing supplies purchased on December 12, $170 remains.
g. Suzie calculates that the company owes $14,700 in income taxes.

Assume the following ending balances for the month of July.

	Balance
Cash	$	28,040
Prepaid insurance		5,880
Supplies (Office)		1,400
Equipment (Bikes)		11,900
Accounts payable		1,400
Deferred revenue		10,400
Common stock		33,000
Service revenue (Clinic)		5,200
Advertising expense		980
Legal fees expense		1,800

value:
3.00 points

Required information

Great Adventures Problem 3-1 Part 2

2. Record adjusting entries as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

emeraldeagle163

The Coca-Cola Company and PepsiCo, Inc. The financial statementsof Coca-Cola and PepsiCo are presented in Appendices C and D,respectively. The companies' complete annual reports, including thenotes to the financial statements, are available online.Instructions Use the companies' financial information to answer thefollowing questions.

(a) What type of income format(s) is used by these twocompanies? Identify any differences in income statement formatbetween these two companies.

(b) What are the gross profits, operating profits, net incomes,and net incomes attributable to noncontrolling interests for thesetwo companies over the 3-year period 2012-2014? Which company hashad better financial results over this period of time?

CA-4-2,p.190 Instructions Indicate the deficiencies in theincome statement presented above. Assume that the corporationdesires a single-step income statement. CA4-2 GROUPWORK (EarningsManagement) Bobek Inc. has recently reported steadily increasingincome. The company reported income of $20,000 in 2014, $25,000 in2015, and $30,000 in 2016. A number of market analysts haverecommended that investors buy the stock because they expect thesteady growth in income to continue. Bobek is approaching the endof its fiscal year in 2017, and it again appears to be a good year.However, it has not yet recorded warranty expense. Based on priorexperience, this year's warranty expense should be around $5,000,but some managers have approached the controller to suggest alarger, more conservative warranty expense should be recorded thisyear. Income before warranty expense is $43,000. Specifically, byrecording a $7,000 warranty accrual this year, Bobek could reportan increase in income for this year and still be in a position tocover its warranty costs in future years. Instructions

(a) What is earnings management?

(b) Assume income before warranty expense is $43,000 for both2017 and 2018 and that total warranty expense over the 2-yearperiod is $10,000. What is the effect of the proposed accounting in2017? In 2018?

P18-2 (LO2,3,4) (Allocate Transaction Price, Modification ofContract) Refer to the Tablet Bundle A revenue arrangement inP18-1. In response to competitive pressure for Internet access forTablet Bundle A, after 2 years of the 3-year contract, TabletTailors offers a modified contract and extension incentive. Theextended contract services are similar to those provided in thefirst 2 years of the contract. Signing the extension and paying $90(which equals the standalone selling of the revised Internetservice package) extends access for 2 more years of Internetconnection. Forty Tablet Bundle A customers sign up for this offer.Instructions

(a) Prepare the journal entries when the contract is signed onJanuary 2, 2019, for the 40 extended contracts. Assume themodification does not result in a separate performance obligation.(b) Prepare the journal entries on December 31, 2019, for the 40extended contracts (the first year of the revised 3-yearcontract).

P18-3 (LO2,3,4) (Allocate Transaction Price, Discounts, TimeValue) Grill Master Company sells total outdoor grilling solutions,providing gas and charcoal grills, accessories, and installationservices for custom patio grilling stations. Instructions Respondto the requirements related to the following independent revenuearrangements for Grill Master products and services.

(a) Grill Master offers contract GM205, which is comprised of afree-standing gas grill for small patio use plus installation to acustomer's gas line for a total price $800. On a standalone basis,the grill sells for $700 (cost $425), and Grill Master estimatesthat the standalone selling price of the installation service(based on cost-plus estimation) is $150. (The selling of the grilland the installation services should be considered two performanceobligations.) Grill Master signed 10 GM205 contracts on April 20,2017, and customers paid the contract price in cash. The grillswere delivered and installed on May 15, 2017. Prepare journalentries for Grill Master for GM205 in April and May 2017.

(b) The State of Kentucky is planning major renovations in itsparks during 2017 and enters into a contract with Grill Master topurchase 400 durable, easy maintenance, standard charcoal grillsduring 2017. The grills are priced at $200 each (with a cost of$160 each), and Grill Master provides a 6% volume discount ifKentucky purchases at least 300 grills during 2017. On April 17,2017, Grill Master delivered and received payment for 280 grills.Based on prior experience with the State of Kentucky renovationprojects, the delivery of this many grills makes it certain thatKentucky will meet the discount threshold. Prepare the journalentries for Grill Master for grills sold on April 17, 2017. Assumethe company records sales transaction net.

(c) Grill Master sells its specialty combination gas/wood-firedgrills to local restaurants. Each grill is sold for $1,000 (cost$550) on credit with terms 3/30, net/90. Prepare the journalentries for the sale of 20 grills on September 1, 2017, and uponpayment, assuming the customer paid on (1) September 25, 2017, and(2) October 15, 2017. Assume the company records sales net.

(d) On October 1, 2017, Grill Master sold one of its superdeluxe combination gas/charcoal grills to a local builder. Thebuilder plans to install it in one of its "Parade of Homes" houses.Grill Master accepted a 3-year, zero-interest-bearing note withface amount of $5,324. The grill has an inventory cost of $2,700.An interest rate of 10% is an appropriate market rate of interestfor this customer. Prepare the journal entries on October 1, 2017,and December 31, 2017.

maroonchinchilla56

Weekly leaderboard

Home

Homework Help 3,900,000

Accounting 580,000