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 $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, 2022:
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 $400 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.
Journal Entry | |||
Date | Account Tittle | Debit | Credit |
Expense for Cost of Suburban | $12,000.00 | ||
Repairing Expense - Repainting | $3,000.00 | ||
Prepaid Insurance | $1,800.00 | ||
Additional expense - Deluxe Roof Rack and trailer Hitch | $2,000.00 | ||
Cash | $18,800.00 | ||
To Record Expenditure made | |||
Equipment | $17,000.00 | ||
Expense for Cost of Suburban | $12,000.00 | ||
Repairing Expense - Repainting | $3,000.00 | ||
Additional expense - Deluxe Roof Rack and trailer Hitch | $2,000.00 | ||
To Record Capitalization of Equipment |
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purc...
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 $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, 2022: The company pays $1,800 to GEICO for a one-year insurance policy. The company spends an extra $3,000 to repaint the vehicle,...
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 $12,600. They expect to use the Suburban for five years and then sell the vehicle for $4,800. The following expenditures related to the vehicle were also made on July 1, 2022 • The company pays $1,950 to GEICO for a one year insurance policy. • The company spends an extra $3,600 to...
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 $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, 2022: The company pays $1,800 to GEICO for a one-year insurance policy. The company spends an extra $3,000 to repaint the vehicle,...
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...
ony 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 $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, 2022: The company pays $1,800 to GEICO for a one-year insurance policy. The company spends an extra $3,000 to repaint the vehicle,...
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 $15,400. They expect to use the Suburban for five years and then sell the vehicle for $6,200. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,650 to GEICO for a one-year insurance policy. The company spends an extra $6,400 to repaint the vehicle,...
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 $12.600. They expect to use the Suburban for five years and then sell the vehicle for $4,800. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $1,950 to GEICO for a one-year insurance policy. The company spends an extra $3,600 to repaint the vehicle,...
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 $12,600. They expect to use the Suburban for five years and then sell the vehicle for $4,800. The following expenditures related to the vehicle were also made on July 1, 2022: • The company pays $1.950 to GEICO for a one-year insurance policy. . The company spends an extra $3,600 to repaint...
Required information The following information applies to the questions displayed below) 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...
Great Adventures Problem AP7-1 [The following information applies to the questions displayed below.) 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 4.2022. for $12,400. They expect to use the Suburban for five years and then sell the vehicle for $4,700. The following expenditures related to the vehicle were also made on July 1, 2022 • The company pays $1,900 to GEICO for a...