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 $$14,000.$ They expect to use the Suburban for five years and then sell the vehicle for $$5,500.$ The following expenditures related to the vehicle were also made on July $1,2025$:

The company pays $$2,300$ to GEICO for a one$-$year insurance policy.

The company spends an extra $$5,000$ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.

An additional $$2,500$ 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 $$1,400$ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

Provide general journal entries for $($Record the expenditures related to the vehicle on July $1,2025.($ Note: The capitalized cost of the vehicle is recorded in the Equipment account$),$ Record the expenditure related to vehicle maintenance on October $22,2025,$ Record the depreciation for vehicle purchased. $($Use straight$-$line depreciation$),$ record the expiration of prepaid insurance, the closing entry for revenue accounts, and record the closing entry for expense accounts. Then provide an income statement and balance sheet for the provided information. Answer is not complete.

Requirement

General

General

Trial Balance

Income

Journal

Ledger

Statement

Balance Sheet

Prepare the journal entries for transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$