Question: 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 …

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 GEICO for a one-year
insurance policy.
The company spends an extra $4,200 to repaint the vehicle,
placing the Great Adventures logo on the front hood, back, and both
sides.
An additional $2,300 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, 2022, the company pays $1,000 for basic
vehicle maintenance related to changing the oil, replacing the
windshield wipers, rotating the tires, and inserting a new air
filter.
Record the sale of the vehicle two years later on July 1, 2024,
for $11,200. (If no entry is required for a
transaction/event, select “No Journal Entry Required” in the first
account field.)