Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which one is the right answer? Answer quickly and correctly for thumbs up! Thanks sooo much! Tony and Suzie see the need for a rugged
Which one is the right answer?
Answer quickly and correctly for thumbs up! Thanks sooo much!
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 $15,000. They expect to use the Suburban for five years and then sell the vehicle for $6,000. The following expenditures related to the vehicle were also made on July 1, 2022: . The company pays $2,550 to GEICO for a one-year insurance policy. . The company spends an extra $6,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. . An additional $2,750 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 $1,900 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. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Journal entry worksheet 1 Record the expenditures related to the new vehicle. credit The following will be the journal entry on july 01 2022. date general journal debit july 01 2022 Equipment - vehicle a/c 23,750 .To cash a/c 23,750 ...... Debit Credit Date Accounts Titles and Explanation Equipment Jul 01, 2022 $ 15,000 + $ 6,000 + $ 2,750 ) Prepaid Insurance Cash (To record the expenditures related to the new vehicle $ 23,750 $ 2,550 $ 26,300 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started