[The following information applies to the questions displayed below.]

On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31.

Aug. 1 Great Adventures obtains a $30,000 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.

Aug. 4 The company purchases 14 kayaks, paying $28,000 cash.

Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $4,000 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 the company receives $10,500 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, purchasing a one-year rental policy for $2,400 ($200 per month).

Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,200 cash.

Oct. 17 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. The company receives $17,900 cash.

Dec. 1 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.

Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race.

Dec. 8 The company pays $1,200 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.

Dec. 12 The company purchases racing supplies for $2,800 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 The company receives $20,000 cash from a total of forty teams, and the race is held.

Dec. 16 The company pays Victor's salary of $2,000.

Dec. 31 The company pays a dividend of $4,000 ($2,000 to Tony and $2,000 to Suzie).

Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,500. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married!

The following information relates to year-end adjusting entries as of December 31, 2018.

a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000.

b. Six months' worth of insurance has expired.

c. Four months' worth of rent has expired.

d. Of the $1,800 of office supplies purchased on July 4, $300 remains.

e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded.

f. Of the $2,800 of racing supplies purchased on December 12, $200 remains.

g. Suzie calculates that the company owes $14,000 in income taxes.

Assume the following ending balances for the month of July.

1) Record adjusting entries as of December 31, 2018.

2) Post transactions from August 1 through December 31 and adjusting entries on December 31 to T-accounts

3) Prepare an adjusted trial balance as of December 31, 2018

4) For the period July 1 to December 31, 2018, prepare an income statement.

5) For the period July 1 to December 31, 2018, prepare a statement of stockholders' equity. All account balances on July 1 were zero.

6) Prepare a classified balance sheet as of December 31, 2018.

7) Record closing entries as of December 31, 2018