RWP7-1 (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 $14,200. 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 1,2025 : - 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 22,2025 , 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 1,2025 . 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 Record the expenditures related to the new vehicle. Note: Enter debits before credits. 2. Record the expenditure related to vehicle maintenance on October 22,2025 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the expenditure related to vehicle maintenance. Note: Enter debits before credits. RWP7-1 (Algo) Great Adventures Continuing Case Part 3 3. Prepare a depreciation schedule using the straight-line method. 4. Record the depreciation expense and any other adjusting entries related to the vehicle on December 31,2025 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the depreciation expense for the vehicle. Note: Enter debits before credits. Required: 5. Record the sale of the vehicle two years later on July 1,2027 , for $12,200. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Note: Enter debits before credits
