Midterm Test #$3$ Ch $7-9$ Due $5/3$

Required information

RWP$7-1($Algo$)$ Great Adventures Continuing Case

$[$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 $1,2025,$ 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 $1,2025$ :

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 $22,2025,$ 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.

RWP$7-1($Algo$)$ Great Adventures Continuing Case Part $4$

Record the depreciation expense and any other adjusting entries related to the vehicle on December $31,2025.($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 in table $1$ and table $2$ requires you to Record the expiration of prepaid insurance.