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 $13,200. They expect to use the Suburban for five years and then sell the vehicle for $5,100. The following expenditures related to the vehicle were also made on July 1,2025 : - The company pays $2,100 to GEICO for a one-year insurance policy. - The company spends an extra $4,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. - An additional $2,300 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 $1,000 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. RWP7-1 (Algo) Great Adventures Continuing Case Part 5 Required: 5. Record the sale of the vehicle two years later on July 1, 2027, for $11,200. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, "I've always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I knov this would be the perfect place." On November 1,2025 , Great Adventures purchased the land by issuing a $430,000,6%,8-year installment note to the seller. Payments of $5,651 are required at the end of each month over the life of the 8-year loan. Each monthl payment of $5,651 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night, Tony exclaimed, "We now have land for our new camp; this has to be the best news ever!" Suzie said, "There's something else I need to tell you. I'm expecting!" Required: 1. Complete the first three rows of an amortization schedule. 2. Record the purchase of land with the issuance of a long-term note payable on November 1, 2025. 3-a. Record the first two payments on November 30, 2025, and December 31, 2025. 3-b. Calculate the remaining balance of the note payable as of December 31, 2025. 4. The 12 monthly payments in 2026 (following year) will reduce the note's balance by an additional \$43,617. Record the reclassification of this amount from Notes Payable (long-term) to Notes Payable (current). Complete this question by entering your answers in the tabs below. Complete the first three rows of an amortization schedule. (Do not round your intermediate calculations. Round final answers to the nearest dollar amount.)
