End of month adjusting entries

Store Fixtures: Useful life is 10 years, original purchase price was $50,000 and residual value is $5,500. Depreciation is calculated using the straight line method and is recorded monthly.

Help!

First take the purchase price minus the residual value to get your depreciable base, then divide this number by the useful life to get your depreciation per year. For the monthly rate take the depreciation per year times number of months of depreciation divided by 12 months.