a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,580.b. Six months' of the one-year insurance policy purchased on July 1 has expired.c. Four months of the one-year rental agreement purchased on September 1 has expired.d. Of the $1,800 of office supplies purchased on July 4, $250 remains.e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded.f. Of the $3,000 of racing supplies purchased on December 12, $110 remains.g. Suzie calculates that the company owes $13,500 in income taxes.RequirementGeneralGeneralIncomeStatement ofJournalLedgerTrial BalanceStatementBalance SheetSEPrepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field.)View transaction listJournal entry worksheet3031323334353637Prepare the closing entry for cash dividends.Note: Enter debits before credits.DateGeneral JournalDebitCreditDec 31, 2021 1 Sell $14,500 of common stock to Suzie.1 Sell $14,500 of common stock to Tony.1 Purchase a one-year insurance policy for $5,160 ($430 per month) to cover injuries to participants duringoutdoor clinics.Jul.Jul.Jul.Jul.2 Pay legal fees of $1,600 associated with incorporation.4 Purchase office supplies of $1,800 on account.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 $30 on the day of the clinic.8 Purchase 10 mountain bikes, paying $18,400 cash.Jul.Jul.Jul.Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,800 from 60 bikers. Tony conducts the mountainbiking clinic.Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and thecompany receives $2,150.Jul. 24 Pay $880 to a local radio station for advertising to appear immediately. A kayaking clinic will be held onAugust 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 $41,000 low-interest loan for the company from the city council, which has recentlypassed an initiative encouraging business development related to outdoor activities. The loan is due in threeyears, and 6% annual interest is due each year on July 31.4 The company purchases 14 kayaks, paying $19,500 cash.Aug.Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $5,500 that was paid in advance on July30, on the day of the clinic. Tony conducts the first kayak clinic.Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,200 cash.Aug. 24 Office supplies of $1,800 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 oneyear, paying $4,680 ($390 per month) in advance.Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,800 cash.Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read analtimeter, use a compass, and orient through heavily wooded areas. The company receives $18,100 cash.1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will race fromcheckpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, androck-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry feefor each team is $550.Dec.5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 insalary for each team that competes in the race. His salary will be paid after the race.8 The company pays $1,300 to purchase a permit from a state park where the race will be held. The amount isrecorded as a miscellaneous expense.Dec.Dec.Dec. 12 The company purchases racing supplies for $3,000 on account due in 30 days. Supplies include trophies for thetop-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and fieldmarkers to prepare the racecourse.Dec. 15 The company receives $22,000 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 $3,500 ($1,750 to Tony and $1,750 to Suzie).

Question

a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,580.b. Six months' of the one-year insurance policy purchased on July 1 has expired.c. Four months of the one-year rental agreement purchased on September 1 has expired.d. Of the $1,800 of office supplies purchased on July 4, $250 remains.e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded.f. Of the $3,000 of racing supplies purchased on December 12, $110 remains.g. Suzie calculates that the company owes $13,500 in income taxes.RequirementGeneralGeneralIncomeStatement ofJournalLedgerTrial BalanceStatementBalance SheetSEPrepare the journal entries for transactions. (If no entry is required for a transaction/event, select &#34;No journal entry required&#34; in the firstaccount field.)View transaction listJournal entry worksheet3031323334353637Prepare the closing entry for cash dividends.Note: Enter debits before credits.DateGeneral JournalDebitCreditDec 31, 2021 1 Sell $14,500 of common stock to Suzie.1 Sell $14,500 of common stock to Tony.1 Purchase a one-year insurance policy for $5,160 ($430 per month) to cover injuries to participants duringoutdoor clinics.Jul.Jul.Jul.Jul.2 Pay legal fees of $1,600 associated with incorporation.4 Purchase office supplies of $1,800 on account.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 $30 on the day of the clinic.8 Purchase 10 mountain bikes, paying $18,400 cash.Jul.Jul.Jul.Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,800 from 60 bikers. Tony conducts the mountainbiking clinic.Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and thecompany receives $2,150.Jul. 24 Pay $880 to a local radio station for advertising to appear immediately. A kayaking clinic will be held onAugust 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 $41,000 low-interest loan for the company from the city council, which has recentlypassed an initiative encouraging business development related to outdoor activities. The loan is due in threeyears, and 6% annual interest is due each year on July 31.4 The company purchases 14 kayaks, paying $19,500 cash.Aug.Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $5,500 that was paid in advance on July30, on the day of the clinic. Tony conducts the first kayak clinic.Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,200 cash.Aug. 24 Office supplies of $1,800 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 oneyear, paying $4,680 ($390 per month) in advance.Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,800 cash.Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read analtimeter, use a compass, and orient through heavily wooded areas. The company receives $18,100 cash.1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will race fromcheckpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, androck-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry feefor each team is $550.Dec.5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 insalary for each team that competes in the race. His salary will be paid after the race.8 The company pays $1,300 to purchase a permit from a state park where the race will be held. The amount isrecorded as a miscellaneous expense.Dec.Dec.Dec. 12 The company purchases racing supplies for $3,000 on account due in 30 days. Supplies include trophies for thetop-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and fieldmarkers to prepare the racecourse.Dec. 15 The company receives $22,000 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 $3,500 ($1,750 to Tony and $1,750 to Suzie).

Accepted Answer

Closing entries:
in preparation of financial statements, entity must close all revenue and expense…