ACC 120 Tony and Suzie graduate from college
Question # 00385215
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Updated on: 09/13/2016 02:07 AM Due on: 09/13/2016
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 27,000 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 $13,500 of common stock to Suzie. | ||
| Jul. | 1 | Sell $13,500 of common stock to Tony. | ||
| Jul. | 1 | Purchase a one-year insurance policy for $4,080 ($340 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 $1,700 on account. | ||
| Jul. | 7 | Pay for advertising of $260 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 $11,100 cash. | ||
| Jul. | 15 | On the day of the clinic, Great Adventures receives cash of $3,000 from 50 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 $3,400. | ||
| Jul. | 24 | Pay for advertising of $730 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $140 in advance or $190 on the day of the clinic. | ||
| Jul. | 30 | Great Adventures receives cash of $11,200 in advance from 80 kayakers for the upcoming kayak clinic. Great a general journal |
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Rating:
/5
Solution: ACC 120 Tony and Suzie graduate from college