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Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They would love to buy a Hummer, but it is just too expensive and too small for their needs, so they settle on a used Suburban. The cost of the Suburban is $12,000. The vehicle is purchased in late June and will be put into use on July 1, 2013. Annual insurance from GEICO runs $1,800 per year. The paint is starting to fade, so they spend an extra $3,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,000 is spent on a deluxe roof rack and a trailer hitch. They expect to use the Suburban for five years and then sell the vehicle for $4,500.

1.

Determine the amount that should be recorded for the new vehicle. (Omit the "$" sign in your response.) 2. Prepare a depreciation schedule using the straight-line method. (Omit the "$" sign in your response.) GREAT ADVENTURES End of Year Amounts Year Depreciation Expense Accumulated Depreciation Book Value 1 2 3 4 5 6 Total 3. Record the sale of the vehicle two years later on July 1, 2015, for $10,000. (Omit the "$" sign in your response.) Date General Journal Debit Credit July 1, 2015 (Click to select) Interest expense Cash Accumulated depreciation Gain Equipment Notes payable Notes receivable Loss (Click to select) Notes payable Loss Notes receivable Interest expense Equipment Accumulated depreciation Cash Gain (Click to select) Interest expense Equipment Loss Accumulated depreciation Notes payable Gain Cash Notes receivable (Click to select) Loss Gain Notes payable Interest expense Notes receivable Cash Equipment Accumulated depreciation

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