Required information 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 $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, 2022: 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, 2022, 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. Great Adventures Problem AP7-1 Part 1 Required: 1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded i Equipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first ac View transaction list Journal entry worksheet Record the expenditure related to vehicle maintenance. Note: Enter debits before credits. General Journal Debit Credit Date Oct 22, 2022 Record entry Clear entry View general journal Required information 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 $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, 2022: 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, 2022, 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. Great Adventures Problem AP7-1 Part 3 3. Prepare a depreciation schedule using the straight-line method. GREAT ADVENTURES End of Year Amounts Depreciation Accumulated Expense Depreciation Year Book Value 2022 2023 2024 2025 2026 2027 Total 4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (lf for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the depreciation expense for the vehicle. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2022 Record entry Clear entry View general journal 4. Record the depreciation expense and any other adjustments related to the vehicle on December for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet
