Great Adventures Problem AP7-1

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[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 $14,400. They expect to use the Suburban for five years and then sell the vehicle for $5,700. The following expenditures related to the vehicle were also made on July 1, 2022:

• The company pays $2,400 to GEICO for a one-year insurance policy.
• The company spends an extra $5,400 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
• An additional $2,600 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 $1,600 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

*How to get correct answers.

Great Adventures Problem AP7-1 Part 5 5. Record the sale of the vehicle two years later on July 1, 2024, for $12,400. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Credit Date July 01, 2024 1 General Journal Cash Accumulated Depreciation Loss Accounts Payable Debit 12,400 3,767 X 833 17,000