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Tony and Suzie see the need for a rugged all - terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban

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 toGEICOfor 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.RWP7-1(Static) Great Adventures Continuing Case Part 11.Record the expenditures related to the vehicle on July 1,2025. Note: The capitalized cost of the vehicle is recorded in the Equipment accountRWP7-1(Static) Great Adventures Continuing Case Part 22.Record the expenditure related to vehicle maintenance on October 22,2025.RWP7-1(Static) Great Adventures Continuing Case Part 33.Prepare a depreciation schedule using the straight-line method.RWP7-1(Static) Great Adventures Continuing Case Part 44.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.)RWP7-1(Static) Great Adventures Continuing Case Part 5Required:5.Record the sale of the vehicle two years later on July 1,2027, for $10,000.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)RWP8-1(Static) Great Adventures Continuing Case Part 1Required:1.Record each of the transactions above on December 31,2025.jornal worksheet questions: 1-Additional interest for five months needs to be accrued on the $30,000,6% note payable obtained on August 1,2024. Recall that annual interest is paid each July 31. Record the adjusting entry. 2-Assume that $10,000 of the $30,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. 3-By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 during the year and recorded those as Deferred Revenue. Record the adjusting entry. 4-Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $12,000. Record the adjusting entry. 5-For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $4,000. Record the adjusting entry.RWP8-1(Static) Great Adventures Continuing Case Part 22.If the likelihood of payment for the litigation is determined to be reasonably possible, what should Great Adventures record for this possible payment.
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