Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help or do as much as you can Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies.
please help or do as much as you can
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 $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 1,2025: - 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 traller 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 $1,200 for basic vehicle maintenance related to changing the oll, replacing the windshield wipers, rotating the tires, and inserting a new oir filter. 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Triat Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adfusting entries in the 'General Journal' tab. 3. Review the adjusted 'Trial balance as of December 31,2025 , in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 5. Prepare a dassified balance sheet as of December 31, 2025 in the 'Balance Sheet' tab. 6. Record the dosing entries in the 'General Journal' tab. 1 Record the expenditures related to the vehicle on July 1 , 2025. Note: The capitalized cost of the vehicle is recorded in the Equipment account. Record the expenditure related to vehic T maintenance on October 22, 2025. Record the depreciation for vehicle purchased. Use straight-line depreciation. 4 Record the expiration of prepaid insurance. 5 Record the closing entry for revenue accounts. 6 Record the closing entry for expense accounts. Unadjusted GREAT ADVENTURES, INCORPORATED Income Statement For the Period Ended December 31, 2025 GREAT ADVENTURES, INCORPORATED Trial Balance October 22,2025 \begin{tabular}{|c|c|c|c|} \hline & Account Title & Debit & Credit \\ \hline Cash & & 83,510 & \\ \hline Accounts Receivable & & 58,000 & T. \\ \hline Allowance for Uncollectible Accounts & & & 3,200 \\ \hline Inventory & & 7,800 & \\ \hline Equipment & & 73,240 & \\ \hline Accumulated Depreciation & & & 28,000 \\ \hline DAccountsPayable & & & 22,400 \\ \hline Winterest Payable & & & 1,150 \\ \hline W Income Tax Payable & & & 15,300 \\ \hline Long-term Notes Payable & 4 & + & 46,000 \\ \hline - Common Stock & 48 & & 23,480 \\ \hline Wetained Earnings & 2 & +8 & 35,450 \\ \hline NServiceRevenue & & & 48,500 \\ \hline ESalesRevenue & & & 132,000 \\ \hline interest Revenue & 2 & - & 160 \\ \hline ASalesDiscounts & & 430 & \\ \hline Cost of Goods Sold & & 49,460 & \\ \hline Depreciation Expense & E & 20,000 & \\ \hline Supplies Expense & 1 & 1,300 & +8 \\ \hline A Salaries Expense & = & 32,000 & 18 \\ \hline Q Bad Debt Expense & & 3.200 & 8 \\ \hline - Interest Expense & - & 2,600 & 2 \\ \hline SRentExpense & & 3,200 & \\ \hline Qincome Tax Expense & & 15,300 & 3 \\ \hline Dinsurance Expense & & 5.600 & \\ \hline Total & & 5355.640$ & 355,640 \\ \hline \end{tabular}Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started