An examination of the cash activities during the year shows the following.
GREAT ADVENTURES
Cash Account Records
July 1, 2021, to December 31, 2021
Cash Receipts Cash Disbursements
Date Desc. Amount Date Check# Desc. Amount
7/1 Stock sale $ 25,000 7/1 101 Insurance $ 5,280
7/15 Clinic receipts 2,000 7/2 102 Legal fees 1,700
7/22 Clinic receipts 1,840 7/7 DC Advertising 340
7/30 Clinic receipts 5,500 7/8 103 Bikes 12,400
8/1 Borrowing 34,000 7/24 DC Advertising 740
8/10 Clinic receipts 4,000 8/4 104 Kayaks 33,600
8/17 Clinic receipts 11,200 8/24 DC Office supplies 1,840
9/21 Clinic receipts 13,600 9/1 105 Rent 2,880
10/17 Clinic receipts 18,300 12/8 106 Race permit 1,240
12/15 Race receipts 12,000 12/16 107 Salary 1,800
12/31 108 Dividend 2,500
12/31 109 Dividend 2,500
$ 127,440 $ 66,820
Summary of Transactions
Beginning Ending
Cash Balance Cash Balance
July 1, 2021 + Cash Receipts Cash Disbursements = December 31, 2021
$ 0 $ 127,440 $ 66,820 $ 60,620
Suzie has not reconciled the companys cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month.
SUMMIT BANK Member FDIC
Leading You to the Top
Account Holder: Great Adventures, Inc. Account Number: 1124537774
Statement Date: Dec. 31, 2021
Account Summary
Beginning Balance Deposits and Credits Withdrawals and Debits Ending Balance
July 1, 2021 No Total No Total December 31, 2021
$0 8 $115,840 11 $60,320 $55,520
Account Details
Deposits and Credits Withdrawals and Debits Daily Balance
Date Amount Desc. Date No. Amount Desc. Date Amount
7/1 $ 25,000 DEP 7/1 101 $ 5,280 CHK 7/1 $ 19,720
8/1 9,340 DEP 7/7 102 1,700 CHK 7/7 17,680
8/1 34,000 DEP 7/7 340 DC 7/14 5,280
9/1 15,200 DEP 7/14 103 12,400 CHK 7/24 4,540
9/30 300 INT 7/24 740 DC 8/1 47,880
10/1 13,600 DEP 8/9 104 33,600 CHK 8/9 14,280
11/1 18,300 DEP 8/24 1,840 DC 8/24 12,440
12/31 100 INT 9/2 105 2,880 CHK 9/1 27,640
9/30 150 SF 9/2 24,760
12/10 106 1,240 CHK 9/30 24,910
12/31 150 SF 10/1 38,510
11/1 56,810
12/10 55,570
$ 115,840 $ 60,320 12/31 $ 55,520
Desc. DEP Customer deposit INT Interest earned SF Service fees
CHK Customer check DC Debit card
After comparing the two balances, Suzie has some concern because the banks balance of $55,520 is substantially less than the companys balance of $60,620.
- 2-a. Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)
- 2-b. Record any necessary entries to adjust cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.)
Great Adventures Problem AP7-1
[The following information applies to the questions displayed below.]
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022:
The company pays $2,800 to GEICO for a one-year insurance policy.
The company spends an extra $7,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
An additional $3,000 is spent on a deluxe roof rack and a trailer hitch.
The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
Great Adventures Problem AP7-1 Part 1
1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Great Adventures Problem AP7-1
[The following information applies to the questions displayed below.]
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022:
The company pays $2,800 to GEICO for a one-year insurance policy.
The company spends an extra $7,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
An additional $3,000 is spent on a deluxe roof rack and a trailer hitch.
The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
Great Adventures Problem AP7-1 Part 4
4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Great Adventures Problem AP4-1 An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Desc. Amount Date Checke Dese. Stock sale $ 25,000 7/1 101 Insurance clinic receipts 2,000 7/2 102 Legal fees clinic receipts 1.840 7/7 DC Advertising clinic receipts 5,500 7/8 103 Bikes Borrowing 34,000 7/24 Advertising Clinic receipts 4,000 8/4 Kayaks clinic receipts 11,200 8/24 Office supplies Clinie receipts 13,600 9/1 Rent Clinic receipts 18,300 12/8 Race permit Race receipts 12.000 12/16 Salary 12/31 Dividend 12/31 109 Dividend $127,440 Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 Amount $ 5,280 1.700 340 12,400 740 33,600 1.840 2.880 1,240 1,800 2.500 2,500 $66,820 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 + - Cash Receipts $127.440 Cash Disbursements $66,820 $ - December 31, 2021 $60,620 0 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month SUMIT BANK Member FDIC Leading You to the Top Account Holder: Great Adventures, Ine. Account Number: 1124537774 Statement Date: Dec. 31, 2021 Account Summary withdrawals and Beginning Balance Deposits and Credits Debits Ending Balance July 1, 2021 Total No Total D ecember 31, 2021 $0 $115.840 11 $60,320 $55,520 Account Details Deposits and Credits Withdrawals and Debits Daily Balance Date Amount Deso. Amount Dese. Date Amount 7/ 1 000 E1% 101 $5.280 CHK7 /1 $19, 720 | 0 TP 102 1.700 7/7 17.680 Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 Cash Receipts $127,440 - Cash Disbursements $ 66,820 - December 31, 2021 $60,620 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month. Member FDIC 1124537774 Dec. 31, 2021 Ending Balance December 31, 2021 $55,520 $0 SUMMIT BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Number: Statement Date: Account Summary Withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 No Total No Total $115,840 11 $60,320 Account Details Deposits and Credits withdrawals and Debito Date Amount Date No. Amount Dese. 7/1 $ 25,000 DEP 101 $ 5,280 CHK 8/1 9.340 DEP 102 1,700 8/1 34,000 7/7 DC 9/1 15. 200 DEP 7/14 103 12,400 CHK 9/30 300 7/24 DC 10/1 13,600 DEP 8/9 33.600 CHK 11/1 18,300 DEP 8/24 1.840 12/31 100 INT 9/2 2.880 CHK 9/30 150 12/10 1.240 CRK 12/31 SF Dese. Date 7/1 7/7 CH DEP INT 104 DC Daily Balance Amount 7/1 $19,720 7/7 17.680 7/14 5,280 7/24 4.540 47,880 8/9 14.280 6/24 12.440 9/1 27.640 9/2 24,760 9/30 24,910 10/1 38,510 11/1 56,810 12/10 55, 570 12/31 $55,520 106 150 $115.840 $60,320 SP Service fees Dese. DEP Customer deposit CHK Customer eheck INT Interest earned DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $55,520 is substantially less than the company's balance of $60,620. Great Adventures Problem AP4-1 An examination of the cash activities during the year shows the following. Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Desc. Amount Date Check# Desc. Stock sale $ 25,000 7/1 101 Insurance Clinic receipts 2,000 7/2 102 Legal fees Clinic receipts 1,840 7/7 DC Advertising clinic receipts 5,500 7/8 103 Bikes Borrowing 34,000 7/24 DC Advertising clinic receipts 4,000 8/4 104 Kayaks Clinic receipts 11,200 8/24 DC office supplies clinic receipts 13,600 9/1 105 Rent Clinic receipts 18,300 12/8 106 Race permit Race receipts 12,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $ 127,440 Amount $ 5,280 1,700 340 12,400 740 33,600 1,840 2,880 1,240 1,800 2,500 2,500 $ 66,820 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 + Cash Receipts $127,440 - Cash Disbursements $66,820 December 31, 2021 $ 60, 620 Sie Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 + Cash Receipts $127,440 - Cash Disbursements $66,820 - December 31, 2021 $60,620 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month. Member FDIC 1124537774 Dec. 31, 2021 Ending Balance December 31, 2021 $55,520 SUMMIT BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Number : Statement Date: Account Summary withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 No Total No Total $0 $115,840 1 1 $60,320 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 7/1 $ 25,000 DEP 7/1 101 $ 5,280 CHK 8/1 5,40 DEP 7/7 102 1,700 CHK 8/1 34,000 DEP 7/7 340 DC 9/1 15,200 DEP 7/14 103 12,400 CHK 9/30 300 INT 7/24 740 DC 10/1 13,600 8/9 104 33,600 CHK 11/1 18,300 DEP 8/24 1,840 DC 12/31 100 9/2 105 2,880 CHK 9/30 150 SE 12/10 106 1,240 CHK 12/31 150 SF DEP Daily Balance Date Amount 7/1 $19,720 7/7 17,680 7/14 5,280 7/24 4,540 8/1 47,880 8/9 14,280 8/24 12,440 9/1 27,640 9/2 24,760 9/30 24,910 10/1 38,510 11/1 56,810 12/10 55,570 12/31 $55,520 INT $115,840 $60,320 Dese. DEP Customer deposit INT Interest earned SP Service fees CHK Customer check DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $55,520 is substantially less than the company's balance of $60,620. 2-a. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) GREAT ADVENTURES, INC. Bank Reconciliation December 31, 2021 Company's Cash Balance Per General Ledger Bank's Cash Balance Per Bank Statement Bank Balance Per Reconciliation Company Balance Per Reconciliation 2.b. Record any necessary entries to adjust cash (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Total entries to the same account together when entering in the journal entry carousel.) 2.b. Record any necessary entries to adjust cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31. 2021 Record entry Clear entry View general journal Great Adventures Problem AP7-1 [The following information applies to the questions displayed below.) Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,800 to GEICO for a one-year Insurance policy. The company spends an extra $7,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back. and both sides. An additional $3,000 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Great Adventures Problem AP7-1 Part 1 Required: 1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Great Adventures Problem AP7-1 [The following information applies to the questions displayed below.) Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,800 to GEICO for a one-year insurance policy The company spends an extra $7,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. . An additional $3,000 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter Great Adventures Problem AP7-1 Part 4 4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the depreciation expense for the vehicle. Great Adventures Problem AP4-1 An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Desc. Amount Date Checke Dese. Stock sale $ 25,000 7/1 101 Insurance clinic receipts 2,000 7/2 102 Legal fees clinic receipts 1.840 7/7 DC Advertising clinic receipts 5,500 7/8 103 Bikes Borrowing 34,000 7/24 Advertising Clinic receipts 4,000 8/4 Kayaks clinic receipts 11,200 8/24 Office supplies Clinie receipts 13,600 9/1 Rent Clinic receipts 18,300 12/8 Race permit Race receipts 12.000 12/16 Salary 12/31 Dividend 12/31 109 Dividend $127,440 Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 Amount $ 5,280 1.700 340 12,400 740 33,600 1.840 2.880 1,240 1,800 2.500 2,500 $66,820 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 + - Cash Receipts $127.440 Cash Disbursements $66,820 $ - December 31, 2021 $60,620 0 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month SUMIT BANK Member FDIC Leading You to the Top Account Holder: Great Adventures, Ine. Account Number: 1124537774 Statement Date: Dec. 31, 2021 Account Summary withdrawals and Beginning Balance Deposits and Credits Debits Ending Balance July 1, 2021 Total No Total D ecember 31, 2021 $0 $115.840 11 $60,320 $55,520 Account Details Deposits and Credits Withdrawals and Debits Daily Balance Date Amount Deso. Amount Dese. Date Amount 7/ 1 000 E1% 101 $5.280 CHK7 /1 $19, 720 | 0 TP 102 1.700 7/7 17.680 Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 Cash Receipts $127,440 - Cash Disbursements $ 66,820 - December 31, 2021 $60,620 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month. Member FDIC 1124537774 Dec. 31, 2021 Ending Balance December 31, 2021 $55,520 $0 SUMMIT BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Number: Statement Date: Account Summary Withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 No Total No Total $115,840 11 $60,320 Account Details Deposits and Credits withdrawals and Debito Date Amount Date No. Amount Dese. 7/1 $ 25,000 DEP 101 $ 5,280 CHK 8/1 9.340 DEP 102 1,700 8/1 34,000 7/7 DC 9/1 15. 200 DEP 7/14 103 12,400 CHK 9/30 300 7/24 DC 10/1 13,600 DEP 8/9 33.600 CHK 11/1 18,300 DEP 8/24 1.840 12/31 100 INT 9/2 2.880 CHK 9/30 150 12/10 1.240 CRK 12/31 SF Dese. Date 7/1 7/7 CH DEP INT 104 DC Daily Balance Amount 7/1 $19,720 7/7 17.680 7/14 5,280 7/24 4.540 47,880 8/9 14.280 6/24 12.440 9/1 27.640 9/2 24,760 9/30 24,910 10/1 38,510 11/1 56,810 12/10 55, 570 12/31 $55,520 106 150 $115.840 $60,320 SP Service fees Dese. DEP Customer deposit CHK Customer eheck INT Interest earned DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $55,520 is substantially less than the company's balance of $60,620. Great Adventures Problem AP4-1 An examination of the cash activities during the year shows the following. Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Desc. Amount Date Check# Desc. Stock sale $ 25,000 7/1 101 Insurance Clinic receipts 2,000 7/2 102 Legal fees Clinic receipts 1,840 7/7 DC Advertising clinic receipts 5,500 7/8 103 Bikes Borrowing 34,000 7/24 DC Advertising clinic receipts 4,000 8/4 104 Kayaks Clinic receipts 11,200 8/24 DC office supplies clinic receipts 13,600 9/1 105 Rent Clinic receipts 18,300 12/8 106 Race permit Race receipts 12,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $ 127,440 Amount $ 5,280 1,700 340 12,400 740 33,600 1,840 2,880 1,240 1,800 2,500 2,500 $ 66,820 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 + Cash Receipts $127,440 - Cash Disbursements $66,820 December 31, 2021 $ 60, 620 Sie Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 + Cash Receipts $127,440 - Cash Disbursements $66,820 - December 31, 2021 $60,620 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month. Member FDIC 1124537774 Dec. 31, 2021 Ending Balance December 31, 2021 $55,520 SUMMIT BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Number : Statement Date: Account Summary withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 No Total No Total $0 $115,840 1 1 $60,320 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 7/1 $ 25,000 DEP 7/1 101 $ 5,280 CHK 8/1 5,40 DEP 7/7 102 1,700 CHK 8/1 34,000 DEP 7/7 340 DC 9/1 15,200 DEP 7/14 103 12,400 CHK 9/30 300 INT 7/24 740 DC 10/1 13,600 8/9 104 33,600 CHK 11/1 18,300 DEP 8/24 1,840 DC 12/31 100 9/2 105 2,880 CHK 9/30 150 SE 12/10 106 1,240 CHK 12/31 150 SF DEP Daily Balance Date Amount 7/1 $19,720 7/7 17,680 7/14 5,280 7/24 4,540 8/1 47,880 8/9 14,280 8/24 12,440 9/1 27,640 9/2 24,760 9/30 24,910 10/1 38,510 11/1 56,810 12/10 55,570 12/31 $55,520 INT $115,840 $60,320 Dese. DEP Customer deposit INT Interest earned SP Service fees CHK Customer check DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $55,520 is substantially less than the company's balance of $60,620. 2-a. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) GREAT ADVENTURES, INC. Bank Reconciliation December 31, 2021 Company's Cash Balance Per General Ledger Bank's Cash Balance Per Bank Statement Bank Balance Per Reconciliation Company Balance Per Reconciliation 2.b. Record any necessary entries to adjust cash (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Total entries to the same account together when entering in the journal entry carousel.) 2.b. Record any necessary entries to adjust cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31. 2021 Record entry Clear entry View general journal Great Adventures Problem AP7-1 [The following information applies to the questions displayed below.) Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,800 to GEICO for a one-year Insurance policy. The company spends an extra $7,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back. and both sides. An additional $3,000 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Great Adventures Problem AP7-1 Part 1 Required: 1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Great Adventures Problem AP7-1 [The following information applies to the questions displayed below.) Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,800 to GEICO for a one-year insurance policy The company spends an extra $7,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. . An additional $3,000 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,400 for basic vehicle maintenance related to changing the oil, replacing the wind
