Record the 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.
2. Record the expenditure related to vehicle maintenance on October 22, 2022.
3. 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.
Great Adventures Problem AP7-1 (GL) 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 $15,200. They expect to use the Suburban for five years and then sell the vehicle for $6,100. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,600 to GEICO for a one-year insurance policy. The company spends an extra $6,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,800 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 $2,000 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 > Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account. Note: Enter debits before credits. Date General Journal Debit Credit Jul 01 24,200 Equipment Cash 24,200 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Income Statement For the period ended December 31, 2022 Revenue: $ 0 0 0 0 Net sales 0 $ 0 Gross profit Expense: $ 0 Total operating expenses Operating income Non-operating items: 0 0 0 Income before Income Taxes 0 0 0 (Trial Balance Balance Sheet > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Current Liabilities: 0 Total current liabilities Long-term liabilities: Total Current Assets 0 0 Total liabilities Stockholders' Equity Long-term assets: 0 Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity Total Assets $ $ 0
