RWP$7-1($Algo$)$ Great Adventures Continuing Case

$[$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 $1,2025,$ for $$14,800.$ They expect to use the Suburban for five years and then sell the vehicle for $$5,900.$ The following expenditures related to the vehicle were also made on July $1,2025$ :

The company pays $$2,500$ to GEICO for a one$-$year insurance policy.

The company spends an extra $$5,800$ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.

An additional $$2,700$ 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 $22,2025,$ the company pays $$1,800$ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

RWP$7-1($Algo$)$ Great Adventures Continuing Case Part $1$

Required:

Record the expenditures related to the vehicle on July $1,2025.$ 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.$)$

Journal entry worksheet

$1$

Record the expenditures related to the new vehicle.

RWP$7-1($Algo$)$ Great Adventures Continuing Case Part $1$

Required:

Record the expenditures related to the vehicle on July $1,2025.$ 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.$)$

Journal entry worksheet

$1$

Record the expenditures related to the new vehicle.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01,2025,$Prepaid Insurance,$2,500,],[,$vdots,,$],[,,,],[,,,]]$

The company pays $$2,500$ to GEICO for a one$-$year insurance policy.

The company spends an extra $$5,800$ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.

An additional $$2,700$ 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 $22,2025,$ the company pays $$1,800$ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

RWP$7-1($Algo$)$ Great Adventures Continuing Case Part $1$

Required:

Record the expenditures related to the vehicle on July $1,2025.$ 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.$)$

Journal entry worksheet

$1$

Record the expenditures related to the new vehicle.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01,2025,$Prepaid Insurance,$2,500,],[,$vdots,,$]]$