Great Adventures Problem AP7-1 (GL) 1 Tony and Suzle 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 $13,800. They expect to use the Suburban for five years and then sell the vehicle for $5,400. The following expenditures related to the vehicle were also made on July 1, 2022: 10 points Skipped The company pays $2,250 to GEICO for a one-year Insurance policy. The company spends an extra $4,800 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2.450 is spent on a deluxe roof rack and a trailer hitch. eBook 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 $1,300 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and Inserting a new alr filter. References Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab. 3. Review the adjusted Trial balance as of December 31, 2022, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2022 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. or post-closing balances will appear for each account, based on your selection. 10 points Adjusted Skipped GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Debit Credit eBook Cash S 83,540 Accounts Receivable 59,000 References 3.300 7,900 76,770 Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Notes Payable Common Stock Retained Earnings Service Revenue Sales Revenue 28.500 22.600 1.200 15.400 48.000 23.915 35.700 49.000 136.000 185 Interest Revenue Sales Discounts Cost of goods sold Depreciation Expense Supplies Expense 440 50,830 20.500 1,400 33,000 3,300 Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense 2.700 3,300 15,400 Insurance Expense Total 5,700 363,780 S s 363.780 X 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. N Record the expenditure related to vehicle maintenance on October 22, 2022. 3 3 Record the depreciation for vehicle purchased. Use straight-line depreciation. Record the expiration of prepaid insurance. 5 Record the closing entry for revenue accounts. 6 Record the closing entry for expense accounts. . Note: = journal entry has been entered 10 points Skipped will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Income Statement For the period ended December 31, 2022 Revenue: eBook References Net sales Gross profit Expense: Total operating expenses Operating income Non-operating items: Income before Income Taxes Trial Balance Balance Sheet > Unadjusted GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets Current Liabilities: Total current liabilities Long-term liabilities: Total Current Assets Long-term assets Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets
