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 $12,600. They expect to use the Suburban for five years and then sell the vehicle for $4,800. The following expenditures related to the vehicle were also made on July 1, 2022: . The company pays $1,950 to GEICO for a one-year insurance policy. The company spends an extra $3,600 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,150 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 $700 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 in the Equipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Date General Journal Debit Credit 1 Jul 01, 2022 7,700 Equipment Cash 7,700 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 $700 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 . Prepare a depreciation schedule using the straight-line method. X Answer is not complete. GREAT ADVENTURES Year Book Value 17,200 2022 2023 2024 End of Year Amounts Depreciation Accumulated Expense Depreciation 3,100 X $ 3,100 X $ 3,100 X 6,200 X 3,100 X 9,300 X 3,100 X 12,400 x 3,100 X 15,500 X 0 X $ 15,500 14,100 X 11,000 X 7,900 X 4,800 X 2025 2026 2027 Total Great Adventures Problem AP7-1 Part 4 4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (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 Record the depreciation expense for the vehicle. Note: Enter debits before credits. Date General Journal Debit Credit 3,100 Dec 31, 2022 Depreciation Expense Accumulated Depreciation 3,100 4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (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 Record the expiration of prepaid insurance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2022 Great Adventures Problem AP7-1 Part 5 5. Record the sale of the vehicle two years later on July 1, 2024, for $10,600. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 July 01, 2024 Cash 10,600 Accumulated Depreciation 7,750 X 1,950 X Loss Equipment 20,300 X