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Developing Financial Statements

2 | P a g e

Tony and Suzie graduate from college in May 2021 and begin developing their new business. They 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, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The

articles of incorporation state that the corporation will sell 20,000 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.

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