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 $13,600. They expect to use the Suburban for five years and then sell the vehicle for $5,300. The following expenditures related to the vehicle were also made on July 1,2022 : - The company pays $2,200 to GEICO for a one-year insurance policy. - The company spends an extra $4,600 to repaint the vehicle, placing the Great Adventures logo on the front hood. back, and both sides. - An additional $2,400 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 $1,200 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air fiter. Sreat Adventures Problem AP7-1 Part 1 equired: Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the quipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 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.) Journal entry worksheet Record the expenditures related to the new vehicle. Note: Enter debits before credits. 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 $13,600. They expect to use the Suburban for five years and then sell the vehicle for $5,300. The following expenditures related to the vehicle were also made on July 1,2022 : - The company pays $2,200 to GEICO for a one-year insurance policy. - The company spends an extra $4,600 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. - An additional $2,400 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 $1,200 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 3 3. Prepare a depreciation schedule using the straight-line method. 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 $13,600. They expect to use the Suburban for five years and then sell the vehicle for $5,300. The following expenditures related to the vehicle were also made on July 1,2022 : - The company pays $2,200 to GElCO for a one-year insurance policy. - The company spends an extra $4,600 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides, - An additional \$2,400 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 Grat Adventures. In addition, on October 22,2022 , the company pays $1,200 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Sreat Adventures Problem AP7-1 Part 4 1. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (If no entry is required or a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 2 Record the depreciation expense for the vehicle. 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.) Journal entry worksheet Record the depreciation expense for the vehicle. Note: Enter debits before credits
