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, 2022, 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, 2022: -The company pays $1,800 to GEICO for 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, 2022, 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. Required: 1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account. 2. Record the expenditure related to vehicle maintenance on October 22, 2022. 3. Prepare a depreciation schedule using the straight-line method. Follow the example in Illustration 7-11, except the calendar years 2022 (first year) and 2027 (last year) will have a half-year of depreciation to reflect the five-year useful life beginning on July 1, 2022. 4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. 5. Record the sale of the vehicle two years later on July 1, 2024, for $10,000. Required 1: Record expenditures on July 1, 2022 No. 1 Date General Journal 22-Oct-02 Repairs & maintenance expense Cash Required 2: Record expenditures on October 22, 2022 General Journal No. 2 Date Required 3: Depreciation schedule using straight-line method Allocation Year Base 2022 2023 2024 2025 2026 2027 Totals Debit Credit 400 Debit Credit 400 Great Adventures Calculation Depreciation Rate End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value $ 1,250 $ 1,250 $ 15,750 2,500 3,750 13,250 2,500 6,250 10,750 2,500 8,750 8,250 2,500 11,250 5,750 2,500 12,500 4,500 $ 13,750 No. Date Required 4: Record depreciation expense and adjustments General Journal Debit Credit 3 4 Required 5: Record sale of vehicle No. 5 Date General Journal Debit Credit