Chapter $7-$ Great Adventures

Help

Save & Exit

Submit

$1$ eBook

References

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 $1,2025,$ for $$15,400.$ They expect to use the Suburban for five years and then sell the vehicle for $$6,200.$ The following expenditures related to the vehicle were also made on July $1,2025$:

The company pays $$2,650$ to GEICO for a one$-$year insurance policy.

The company spends an extra $$6,400$ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.

An additional $$2,850$ 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 $22,2025,$ the company pays $$2,100$ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

$\backslash$table$[[$Requirement$,\backslash$table$[[$General$],[$Journal$]],\backslash$table$[[$General$],[$Ledger$]],$Trial Balance

$\backslash$table$[[$Ancome$],[$Statement$]]]]$

Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, will appear for each account, based on your selection.

Post$-$closing

$\backslash$table$[[$GREAT ADVENTURES, INCORPORATED$],[$Income Statement$],[$For the Period Ended December $31,2025],[$Revenues:$],[,$$$,],[,,],[,,],[$ex$,,],[$Net Sales,,$],[$Gross Profit,,$