Required information

[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 $14,200. They expect to use the Suburban for five years and then sell the vehicle for $5,600. The following expenditures related to the vehicle were also made on July 1, 2022:

• The company pays $2,350 to GEICO for a one-year insurance policy.
• The company spends an extra $5,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
• An additional $2,550 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 $1,500 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

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.

Journal entry worksheet Record the expenditures related to the new vehicle. Note: Enter debits before credits. General Journal Debit Credit Date Jul 01, 2022