This entry applies to a company for the month of December,2005.

One item of equipment( injector) was purchased and put into service in early January 2004. It is being depreciated with the straight-line method using these facts and estimates:

Original Cost: $18,000
Expected salvage Value: $2,500
Useful life (years):8

How do I record this entry for the month of December, 2005?

Thank you very much!

18,000 – 2,500 = 15,500 / 8 = 1,937.50 per year / 12 = $161.46 per month

Dr. Depreciation Expense 161
Cr. Accumulated Amortization Expense 161

Thank you very much!