Great Adventures, Inc.

Journal Entries:

Date Transaction Debit Credit

01-Jul Cash 17000

common stock 17000

01-Jul Cash 17000

common stock 17000

01-Jul Prepaid insurance 4680

cash 4680

02-Jul Leagl expenses 1000

cash 1000

04-Jul Office supplies 1000

accounts payable 1000

07-Jul Advertising expenses 260

cash 260

08-Jul Equipment(Mountain bikes) 10800

cash 10800

15-Jul Cash 2000

service revenue 2000

22-Jul Cash 2300

service revenue 2300

24-Jul Advertising expenses 770

cash 770
 30-Jul Cash 6000
Deferred revenue 6000

August 1 Cash 38,000

Notes Payable 38,000
(Obtain loan from city council

4 Equipment(Kayaks) 28,500
Cash 28,500
(Pay cash for kayaks)

10 Cash 3,400
Service Revenue(Clinic) 3,400
(Receive cash and hold kayak clinic)

10 Deferred Revenue 6,000

Sevice Revenue(Clinc) 6,000
(Receive cash and hold kayak clinic)

17 Cash 12,100
Sevice Revenue(Clinc) 12,100
(Receive cash and hold kayak clinic)

24 Accounts Payable 1,000

Cash 1,000
(Pay cash on account)

September 1 Prepaid Rent 4,800

Cash 4,800
(Pay cash for one-year rental policy)

21 Cash 14,600
Service Revenue(Clinic) 14,600
(Receive cash for rock climbing clinic)

October 17 Cash 18,600

Service Revenue(Clinic) 18,600
(Receive cash for orienteering clinic)

December 8 Misc Expense 1,100

Cash 1,100
(Pay cash for race permit)

12 Supplies(Racing) 2,500
Accounts Payable 2,500
(Purchase racing supplies on account)

15 Cash 25,600
Service Revenue(Race) 25,600
(Receive cash for adventure race)
 16 Salaries Expense 1,600
Cash 1,600
(Pay cash for salary)

31 Dividends 4,100
Cash 4,100
(Pay cash for dividend)

31 No entry

Requirement 2

Adjusting Entries
December 31 Depreciation Expense 8,700
Accumulated Depreciation 8,700
(Adjust accumulated depreciation)

31 Insurance Expense($390 * 6 months) 2,340

Prepaid Insurance 2,340
(Adjust prepaid insurance)

31 Rent Expense($400 * 4months) 1,600

Prepaid Rent 1,600
(Adjust prepaid rent)

31 Supplies Expense(Office)(1.000-280) 720

Supplies(Office) 720
(Adjust office supplies)

31 Interest Expense(38000*6%*5/12) 950

Interest Payable 950
(Adjust interest payable)

31 Supplies Expense(Racing)(2500-230) 2,270

Supplies(Racing) 2,270
(Adjust racing supplies)

31 Income Tax Expense 13,300

Income Tax Payable 13,300
(Adjust income tax payable)

Requirement 6
Closing Entries
December 31 Service Revenue(Clinic) 59,000
Service Revenue(Racing) 25,600
Income Summary 84,600

31 Income Summary 34,610

Advertising Expense 1,030
Depreciation Expense 8,700
Income Tax Expense 13,300
Insurance Expense 2,340
Interest Expense 950
Legal Fees Expense 1,000
Miscellaneous Expense 1,100
Rent Expense 1,600
Salaries Expense 1,600
Supplies Expense (Office) 720
Supplies Expense (Racing) 2,270

31 Income Summary 49,990

Retained earnings 49,990

31 Retained Earnings 4,100

Dividends 4,100
 Great Adventures, Inc,
Adjusted Trial Balance
December 31, 2018
Accounts Debit Credit
Cash $ 97,990
Prepaid Insurance $ 2,340
Prepaid Rent $ 3,200
Supplies (Office) $ 280
Supplies (Racing) $ 230
Equipment (Bikes) $ 10,800
Equipment (Kayaks) $ 28,500
Accumulated Depreciation $ 8,700
Accounts Payable $ 2,500
Income Tax Payable $ 13,300
Interest Payable $ 950
Notes Payable $ 38,000
Deferred revenue $ -
Common Stock $ 34,000
Dividends $ 4,100
Service Revenue (Clinic) $ 59,000
Service Revenue (Racing) $ 25,600
Advertising Expense $ 1,030
Depreciation Expense $ 8,700
Income Tax Expense $ 13,300
Insurance Expense $ 2,340
Interest Expense $ 950
Legal Fees Expense $ 1,000
Miscellaneous Expense $ 1,100
Rent Expense $ 1,600
Salaries Expense $ 1,600
Supplies Expense (Office) $ 720
Supplies Expense (Racing) $ 2,270
Totals $ 182,050 $ 182,050
 Post closing trial balance
Cash $ 97,990 $ -
Prepaid Insurance $ 2,340 $ -
Prepaid Rent $ 3,200 $ -
Supplies (Office) $ 280 $ -
Supplies (Racing) $ 230 $ -
Equipment (Bikes) $ 10,800 $ -
Equipment (Kayaks) $ 28,500 $ -
Accumulated Depreciation $ - $ 8,700
Accounts Payable $ - $ 2,500
Income Tax Payable $ - $ 13,300
Interest Payable $ - $ 950
Notes Payable $ - $ 38,000
Deferred revenue $ - $ -
Common Stock $ - $ 34,000
retained earnings 45,890
total $ 143,340 $ 143,340
 Cash Common stock
01-Jul 17000 17000 01-Jul 17000 17000
01-Jul 17000 34000 01-Jul 17000 34000
01-Jul 4680 29320
02-Jul 1000 28320 Service reveue(clinic)
07-Jul 260 28060 15-Jul 2000 2000
08-Jul 10800 17260 22-Jul 2300 4300
15-Jul 2000 19260 10-Aug 3,400 7,700
22-Jul 2300 21560 10-Aug 6,000 13,700
24-Jul 770 20790 17-Aug 12,100 25,800
30-Jul 6000 26790 21-Sep 14,600 40,400
01-Aug 38,000 64,790 17-Dec 18,600 59,000
04-Jan 28,500 36,290
10-Jan 3,400 39,690 Deferred revenue
17-Jan 12,100 51,790 Date Debit Credit Balance
24-Jan 1,000 50,790 30-Jul 6000 6000
01-Sep 4,800 45,990 10-Aug 6,000 0
21-Jan 14,600 60,590
01-Oct 18,600 79,190
01-Dec 1,100 78,090 Accumulated dep
15-Jan 25,600 103,690 31-Dec $ 8,700 8,700
16-Jan 1,600 102,090
31-Jan 4,100 97,990
Income tax payable
Prepaid insurance 31-Dec $ 13,300 13,300
01-Jul 4680 4680
01-Dec 2,340 2,340
Interest payable
Prepaid rent 31-Dec $ 950 950
01-Sep 4,800 4800
01-Dec 1,600 3,200
Notes payable
Supplies(office) 01-Aug $ 38,000 38,000
04-Jul 1000 1000
01-Dec 720 280
Accounts payable
Supplies(racing) 04-Jul 1000 1000
01-Dec 2,500 2,500 24-Aug 1,000 0
01-Dec 2,270 230 12-Dec 2,500 2,500

Equipments(Bikes
08-Jul 10800 10800 Service reveue(racing)
15-Dec 25,600

Equipments(Kayaks)
01-Aug 28,500 28,500

Advertising expense
07-Jul 260 260
24-Jul 770 1030

Depriciation expense
31-Dec 8,700 8,700

Income tax expense

31-Dec 13,300 13,300

Insurance expense
31-Dec 2,340 2,340

Interest expense
31-Dec 950 950

Legal fees expense

02-Jul 1000 1000

Miscellaneous exp
08-Dec 1,100 1,100

Rent exp.
31-Dec 1,600 1,600

Salaries expense
16-Dec 1,600 1,600
 supplies expense(office)
31-Dec 720 720

supplies expense(racing)
31-Dec 2,270 2,270
 Great Adventures, Inc.
Income Statement
For the period ended December 31, 2018

Revenues:
Service Revenue (Clinic) $ 59,000
Service Revenue (Racing) 25,600
Total Revenues $ 84,600
Expenses:
Advertising Expense 1,030
Depreciation Expense 8,700
Income Tax Expense 13,300
Insurance Expense 2,340
Interest Expense 950
Legal Fees Expense 1,000
Miscellaneous Expense 1,100
Rent Expense 1,600
Salaries Expense 1,600
Supplies Expense (Office) 720
Supplies Expense (Racing) 2,270
Total Expenses 34,610
Net Income $ 49,990
 Great Adventures, Inc.
Statement of Stockholders's Equity
For the period ended December 31, 2018

Common Stock Retained Earnings Total Stockholder's Equity

Balance at July 1 $ - $ - $ -
Issuance of common stock 34,000 - $ 34,000
Add: Net income for 2018 - 49,990 $ 49,990
Less: Dividends - (4,100) $ (4,100)
Balance at December 31 $ 34,000 $ - $ 45,890 $ - $ 79,890
 Great Adventures, Inc.
Balance Sheet
December 31, 2018
Assets Liabilities
Cash $ 97,990 Accounts Payable $ 2,500
Prepaid Insurance $ 2,340 Interest Payable $ 950
Prepaid Rent $ 3,200 Income Tax Payable $ 13,300
Supplies (Office) $ 280 Total Current Liabilities 16,750
Supplies (Racing) $ 230 Notes Payable 38,000
Total Current Assets 104,040
Stockholders' Equity
Equipment (Bikes) 10,800 Common Stock 34,000
Equipment (Kayaks) 28,500 Retained Earnings 45,890
Accum. Depr. (8,700) Total Stockholder's Equity 79,890
Total Liabilities and
Total Assets $ 134,640 Stockholder's Equity $ 134,640