RWP$7-1($Static$)$ 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 $$12,000.$ They expect to use the Suburban for five years and then sell the vehicle for $$4,500.$ The following expenditures related to the vehicle were also made on July $1,2025$ :

The company pays $$1,800$ to GEICO for a one$-$year insurance policy.

The company spends an extra $$3,000$ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.

An additional $$2,000$ 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 $22,2025,$ the company pays $$400$ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

RWP$8-1($Static$)$ Great Adventures Continuing Case Part $2$

$2.$ If the likelihood of payment for the litigation is determined to be reasonably possible, what should Great Adventures record for this possible payment. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

No

Date

General Journal

Debit

Credit