subject
Business, 04.05.2020 22:35 jordynp5768

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 $15,800. They expect to use the Suburban for five years and then sell the vehicle for $6,400. The following expenditures related to the vehicle were also made on July 1, 2022: The company pays $2,750 to GEICO for a one-year insurance policy. The company spends an extra $6,800 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,950 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 $2,300 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

Required:

a. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account.
b. Record the expenditure related to vehicle maintenance on October 22, 2022.
c. Record the depreciation for vehicle purchased. Use straight-line depreciation.
d. Record the expiration of prepaid insurance.
e. Record the closing entry for revenue accounts.
f. Record the closing entry for expense accounts.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 13:40
Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.
Answers: 2
question
Business, 22.06.2019 15:20
Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."
Answers: 3
question
Business, 22.06.2019 17:10
At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)
Answers: 3
question
Business, 22.06.2019 17:30
What is the sequence of events that could lead to trade surplus
Answers: 3
You know the right answer?
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies....
Questions
Questions on the website: 13722367