Greenwald and Moss developed a business and plan to begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, of the current year, Greenwald and Moss organize their new company as a corporation, Outdoor Adventures Inc. The articles of incorporation state that the corporation will sell equal shares of common stock to the owners. Each share of stock represents a unit of ownership. Greenwald and Moss will act as co-presidents of the company. The following business activities occur during July for Outdoor Adventures. Jul. Jul. Jul. Jul. Jul. Jul. Jul. Jul. Jul. Jul. Jul. 1 Sell 18,500 shares of common stock to Greenwald for $1 per share. 1 Sell 18,500 shares of common stock to Moss for $1 per share. 1 Purchase a one-year insurance policy for $5,280 ($440 per month) to cover injuries to participants during outdoor clinics. 2 Pay legal fees of $1,500 associated with incorporation. 4 Purchase office supplies of $1,000 on account. 7 Pay $320 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 the day of the clinic. 8 Purchase 10 mountain bikes, paying $10,600 cash in total ($1,060 per bike). 15 On the day of the clinic, Outdoor Adventures receives cash of $3,000 from 60 bikers. Greenwald conducts the mountain biking clinic. 22 Because of the success of the first mountain biking clinic, Greenwald holds another mountain biking clinic and the company receives $3,500. 24 Pay $890 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $150 in advance or $200 on the day of the clinic. 30 Outdoor Adventures receives cash of $6,000 in advance from 40 kayakers for the upcoming kayak clinic.