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.

Prepare the journal entries for transactions.

$1.$ Record the expenditures related to the vehicle on July $1,2025.$ Note: The capitalized cost of the vehicle is recorded in the Equipment account.

$2.$ Record the expenditure related to vehicle maintenance on October $22,2025.$

$3.$ Record the depreciation for vehicle purchased. Use straight$-$line depreciation.

$4.$ Record the expiration of prepaid insurance.

$5.$ Record the closing entry for revenue accounts.

$6.$ Record the closing entry for expense accounts.

Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.

The balance sheet is the accounting equation: Assets $=$ Liabilities $+$ Equity. Each asset and liability account is reported separately on the balance sheet. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.