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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 allterrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July for $ They expect to use the Suburban for five years and then sell the vehicle for $ The following expenditures related to the vehicle were also made on July :
The company pays $ to GEICO for a oneyear insurance policy.
The company spends an extra $ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
An additional $ 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 the company pays $ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
tableRequirementtableGeneralJournaltableGeneralLedgerTrial Balance,tableIncomeStatementBalance Sheet
Prepare the journal entries for transactions. If no entry is required for a transactionevent select No Journal Entry Required" in the first account field.
Journal entry worksheet
Record the depreciation for vehicle purchased. Use straightline depreciation.
Note: Enter debits before credits.
tableDateGeneral Journal,Debit,CreditDecember
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