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Type your question hThe following transactions occur over the remainder of the year. Aug. 1 Suzie…

Type your question hThe following transactions occur over the remainder of the year.

Aug. 1

applies for and obtains a $42,000 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

Aug. 4 The company purchases 14 kayaks, costing $14,400.
Aug. 10

additional kayakers pay $3,400 ($170 each), in addition to the $7,200
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 receives $12,300 cash.
Aug. 24 Office supplies of $1,700 purchased on July 4 are paid in full.
Sep. 1

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 $4,440 ($370 per month).

Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,200 cash.
Oct. 17

conducts an orienteering clinic. Participants practice how to
understand a topographical map, read an altimeter, use a compass, and
orient through heavily wooded areas. Clinic fees total $19,600.

Dec. 1

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 $500.

Dec. 5

help organize and promote the race, Tony hires his college roommate,
Victor. Victor will be paid $70 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

company purchases racing supplies for $2,300 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 Forty teams pay a total of $20,000 to race. The race is held.
Dec. 16 The company pays Victor’s salary of $2,800.
Dec. 31 The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Suzie).
Dec. 31

his personal money, Tony purchases a diamond ring for $3,800. Tony
surprises Suzie by proposing that they get married. Suzie accepts!


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