The following transactions occur over the remainder of the year.
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Aug.
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1
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Suzie 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 31.
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Aug.
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4
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The company purchases 14 kayaks, costing $14,400.
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Aug.
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10
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Twenty 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.
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Aug.
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17
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Tony conducts a second kayak clinic and receives $12,300 cash.
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Aug.
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24
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Office supplies of $1,700 purchased on July 4 are paid in full.
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Sep.
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1
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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 $4,440 ($370 per month).
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Sep.
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21
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Tony conducts a rock-climbing clinic. The company receives $14,200 cash.
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Oct.
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17
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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. Clinic fees total $19,600.
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Dec.
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1
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Tony 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.
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Dec.
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5
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To 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.
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Dec.
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8
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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.
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Dec.
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12
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The 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.
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Dec.
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15
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Forty teams pay a total of $20,000 to race. The race is held.
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Dec.
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16
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The company pays Victor’s salary of $2,800.
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Dec.
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31
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The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Suzie).
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Dec.
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31
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Using 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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Required:
1. Record transactions from August 1 through December 31. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly.