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    Jennyg22's Avatar
    Jennyg22 Posts: 3, Reputation: 1
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    #1

    Feb 17, 2011, 06:56 AM
    Accounting Question
    You purchased a truck March 1st for $17,000. The salvage value is $5,000 and the expected useful life is 5 years. What would the entry be for the end of the year accounting cycle on June 30th?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 17, 2011, 09:14 AM

    Your journal entry will be an adjusting entry for depreciation.

    You have to calculate 4 months of depreciation: Cost - Salvage value * number of months/12 months (if you are using Straight Line Method of Depreciation).

    The entry will be:
    Debit Depreciation Expnese for the amount calculated above
    Credit Accumulated Depreciation for the amount calculated above.
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