Please explain! Thanks! Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used
Please explain! Thanks!
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 $12,200. They expect to use the Suburban for five years and then sell the vehicle for $4,600. The following expenditures related to the vehicle were also made on July 1, 2025:
- The company pays $1,850 to GEICO for a one-year insurance policy.
- The company spends an extra $3,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
- An additional $2,050 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 $500 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
Required information RWP7-1 (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 $12,200. They expect to use the Suburban for five years and then sell the vehicle for $4,600. The following expenditures related to the vehicle were also made on July 1,2025 : - The company pays $1,850 to GEICO for a one-year insurance policy. - The company spends an extra $3,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. - An additional $2,050 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 $500 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. WP7-1 (Algo) Great Adventures Continuing Case Part 1 equired: Record the expenditures related to the vehicle on July 1, 2025. 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.) RWP7-1 (Algo) Great Adventures Continuing Case Part 2 2. Record the expenditure related to vehicle maintenance on October 22,2025 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the expenditure related to vehicle maintenance. Note: Enter debits before credits. 3. Prepare a depreciation schedule using the straight-line method. RWP7-1 (Algo) Great Adventures Continuing Case Part 4 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. Note: Enter debits before credits. RWP7-1 (Algo) Great Adventures Continuing Case Part 5 Required: 5. Record the sale of the vehicle two years later on July 1,2027 , for $10,200. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits
