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 $13,000. They expect to use the Suburban for five years and then sell the vehicle for $5,000. The following expenditures related to the vehicle were also made on July 1, 2025: The company pays $2,050 to GEICO for a one-year insurance policy. The company spends an extra $4,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,250 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 $900 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.) View transaction list Journal entry worksheet < Record the expenditures related to the new vehicle. Note: Enter debits before credits. Date July 01, 2025 General Journal Debit Credit View general journal Record entry Clear entry ces 3. Prepare a depreciation schedule using the straight-line method. GREAT ADVENTURES End of Year Amounts Depreciation Accumulated Expense Depreciation Year 2025 $ 1,426 $ 2026 2,850 2027 2,850 2028 2,850 2029 2,850 2030 1,426 Total $ 14,252 Book Value 1,426 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.) View transaction list Journal entry worksheet 2 Record the depreciation expense for the vehicle. Note: Enter debits before credits. Date December 31, 2025 General Journal Debit Credit Record entry Clear entry View general journal 4. Record the depreciation expense and any other adjusting entries related to the vehicle on December 31, 2025. (If required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the expiration of prepaid insurance. Note: Enter debits before credits. Date December 31, 2025 General Journal Debit Credit Record entry Clear entry View general journal