Record the expenditures related to the vehicle on July 1, 2025. Note: The capitalized cost of the vehicle is recorded in the Equipment account.
Record the expenditures related to the vehicle on July 1, 2025. Note: The capitalized cost of the vehicle is recorded in the Equipment account.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 50P
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Transcribed Image Text:Requirement
General
Journal
View transaction list
Journal entry worksheet
< 1
2
Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Re
account field.)
General
Ledger
3
Note: Enter debits before credits.
Date
July 01, 2025
Record entry
Trial Balance
4
5
Record the expenditures related to the vehicle on July 1, 2025. Note: The
capitalized cost of the vehicle is recorded in the Equipment account.
6
Income
Statement
General Journal
Clear entry
Balance Sheet
Requirement
Debit
Credit
View 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 $14,200. They expect to use the Suburban for five years and then sell the vehicle for $5,600. The
following expenditures related to the vehicle were also made on July 1, 2025:
• The company pays $2,350 to GEICO for a one-year insurance policy.
The company spends an extra $5,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both
sides.
• An additional $2,550 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 $1,500 for basic vehicle maintenance related to changing the oil, replacing the windshield
wipers, rotating the tires, and inserting a new air filter.
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