Great Adventures Problem AP7-1 (GL) 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 $15,200. They expect to use the Suburban for five years and then sell the vehicle for $6,100. The following expenditures related to the vehicle were also made on July 1, 2022: • The company pays $2,600 to GEICO for a one-year insurance policy. • The company spends an extra $6,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. • An additional $2,800 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 $2,000 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in t first account field.)
Great Adventures Problem AP7-1 (GL) 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 $15,200. They expect to use the Suburban for five years and then sell the vehicle for $6,100. The following expenditures related to the vehicle were also made on July 1, 2022: • The company pays $2,600 to GEICO for a one-year insurance policy. • The company spends an extra $6,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. • An additional $2,800 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 $2,000 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in t first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Great Adventures Problem AP7-1 (GL)
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 $15,200. They expect to use the Suburban for five years and then sell the vehicle for
$6,100. The following expenditures related to the vehicle were also made on July 1, 2022:
• The company pays $2,600 to GEICO for a one-year insurance policy.
• The company spends an extra $6,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back,
and both sides.
• An additional $2,800 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 $2,000 for basic vehicle maintenance related to changing the oil, replacing
the windshield wipers, rotating the tires, and inserting a new air filter.
Requirement
General
Journal
General
Ledger
Trial Balance
Income
Statement
Balance Sheet
Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in th
first account field.)
Transcribed Image Text:No
1
2
3
4
5
6
Date
Jul 01
Oct 22
Dec 31
Dec 31
Dec 31
Dec 31
Equipment
Prepaid Insurance
Cash
General Journal
Repairs and Maintenance Expense
Cash
Depreciation Expense
Accumulated Depreciation
Insurance Expense
Prepaid Insurance
Repairs and Maintenance Expense
Repairs and Maintenance Expense
Depreciation Expense
Insurance Expense
Debit
2,600
2,000
1,810
1,300
Credit
2,000
1,810
1,300
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