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, 2025, 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, 2025: • 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, 2025, 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. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 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, 2025, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2025 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. < Requirement General Journal >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 2025, 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, 2025:
• 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, 2025, 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.
Requirement
General
Journal
General
Ledger
Trial Balance
Income
Statement
Balance Sheet
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, 2025, in the 'Trial Balance' tab.
4. Prepare an income statement for the period ended December 31, 2025, in the 'Income Statement' tab.
5. Prepare a classified balance sheet as of December 31, 2025 in the 'Balance Sheet' tab.
6. Record the closing entries in the 'General Journal' tab.
< Requirement
General Journal >
Transcribed Image Text: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, 2025, 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, 2025: • 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, 2025, 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. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 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, 2025, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2025 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. < Requirement General Journal >
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