60.1K

Verified Solution

Link Copied!

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.

$2.$ Record the expenditure related to vehicle maintenance on October $22,2025.($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$1$

Record the expenditure related to vehicle maintenance.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$October $22,2025,,,],[,,,]]$

Prev

of $5$

Next

Answer & Explanation Solved by verified expert

See Answer