capitalized cost of vehicle | ||||
purchase cost | 15400 | |||
extra expenditure on paint | 6400 | |||
additional expenditure on roof rack | 2850 | |||
capitalized cost of vehicle | 24650 | |||
date | explanation | debit | credit | |
1-Jul | Vehicle | 24650 | ||
cash | 24650 | |||
(vehicle purchased and expenses incurred for rennovation) | ||||
1-Jul | prepaid Insurance | 2650 | ||
cash | 2650 | |||
Insurance expenses paid for new vehicle | ||||
22-Oct | Repair and maintenance expense | 2100 | ||
cash | 2100 | |||
Annual Depreciation | (24650-6200)/5 | 3690 | ||
Year | Depreciation expense | accumulated depreciation | Book value | |
2022 | 1845 | 1845 | 22805 | |
2023 | 3690 | 5535 | 19115 | |
2024 | 3690 | 9225 | 15425 | |
2025 | 3690 | 12915 | 11735 | |
2026 | 3690 | 16605 | 8045 | |
2027 | 1845 | 18450 | 6200 | |
total | 18450 | |||
date | explanation | debit | credit | |
dec 31 2022 | depreciation expense | 1845 | ||
accumulated depreciation | 1845 | |||
31-Dec | Insurance expense | 1325 | ||
prepaid insurance | 1325 | |||
July 1 2024 | cash | selling price is not provided | ||
accumulated depreciation | ||||
vehicle | ||||
(vehicle sold at book value) | ||||
Required information [The following information applies to the questions displayed below) Tony and Suzie see the...
Required information 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 1, 2022, for $16,000. They expect to use the Suburban for five years and then sell the vehicle for $6,500. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,800 to GEICO...
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 1, 2022, for $12,800. They expect to use the Suburban for five years and then sell the vehicle for $4,900. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,000 to GEICO for a...
Required information 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 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...
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 2022 The company pays $2,550 to GEICO for a one year insurance...
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 $13,200. They expect to use the Suburban for five years and then sell the vehicle for $5,100. The following expenditures related to the vehicle were also made on July 1, 2022 The company pays $2,100 to GEIC0 for a one-year insurance...
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...
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,...
Required information 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 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...
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 $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...