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 $14,400. They expect to use the Suburban for five years and then sell the vehicle for $5,700. The
following expenditures related to the vehicle were also made on July 1, 2022:
- The company pays $2,400 to GEICO for a one-year insurance policy. - The company spends an extra $5,400 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. - An additional $2,600 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 $1,600 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab. 3. Review the adjusted 'Trial balance as of December 31, 2022, in the Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31,2022 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. Prepare the joumal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 56 Record the expenditures related to the vehicle on July 1,2022 . Note: The capitalized cost of the vehicle is recorded in the Equipment account. Note: Enter debits before credits. Each joumal entry is posted automabically to the gereral ledger. The unadjusted, adjusted, or ocst-closing balances with appear for each account, based an your selection. The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. 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. - The company pays $2,400 to GEICO for a one-year insurance policy. - The company spends an extra $5,400 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. - An additional $2,600 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 $1,600 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab. 3. Review the adjusted 'Trial balance as of December 31, 2022, in the Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31,2022 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. Prepare the joumal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 56 Record the expenditures related to the vehicle on July 1,2022 . Note: The capitalized cost of the vehicle is recorded in the Equipment account. Note: Enter debits before credits. Each joumal entry is posted automabically to the gereral ledger. The unadjusted, adjusted, or ocst-closing balances with appear for each account, based an your selection. The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. 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
