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 $15,600. They expect to use the suburban for five years and then sell the vehicle for $6,300. The following expenditures related to the vehicle were also made on July 1, 2022:

The company pays $2,700 for q 1 year insurance policy

The company spends an extra $6,600 to repaint the vehicle

An additional $2,900 is spent on a deluxe roof rack and trailer hitch

The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle. In addition, on October 22, 2022, the company pays $2,200 for basic vehicle maintenance.

Journal entry worksheet

1. Record the expenditures related to the new vehicle.

2. Record the depreciation expense for the vehicle .

3. Record the expiration of prepaid insurance.

P.s. please explain this to me. I can't figure this out for the life of me.