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 $12,000. They expect to use the Suburban for five years and then sell the vehicle for $4,500. The following expenditures related to the vehicle were also made on July 1, 2025: .The company pays $1,800 to GEICO for a one-year insurance policy. ⚫ The company spends an extra $3,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. . An additional $2,000 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 $400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. RWP8-1 (Static) Great Adventures Continuing Case Part 1 Required: 1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journ Entry Required" in the first account field.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $12,000. They expect to use the Suburban for five years and then sell the
vehicle for $4,500. The following expenditures related to the vehicle were also made on July 1, 2025:
• The company pays $1,800 to GEICO for a one-year insurance policy.
•
The company spends an extra $3,000 to repaint the vehicle, placing the Great Adventures logo on the front hood,
back, and both sides.
• An additional $2,000 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 $400 for basic vehicle maintenance related to changing the oil,
replacing the windshield wipers, rotating the tires, and inserting a new air filter.
RWP8-1 (Static) Great Adventures Continuing Case Part 1
Required:
1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journa
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
>
1
2
3
4
5
Additional interest for five months needs to be accrued on the $30,000, 6%
note payable obtained on August 1, 2024. Recall that annual interest is paid
each July 31. Record the adjusting entry.
Note: Enter debits before credits.
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 $12,000. They expect to use the Suburban for five years and then sell the vehicle for $4,500. The following expenditures related to the vehicle were also made on July 1, 2025: • The company pays $1,800 to GEICO for a one-year insurance policy. • The company spends an extra $3,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. • An additional $2,000 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 $400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. RWP8-1 (Static) Great Adventures Continuing Case Part 1 Required: 1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journa Entry Required" in the first account field.) View transaction list Journal entry worksheet > 1 2 3 4 5 Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Record the adjusting entry. Note: Enter debits before credits.
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