Irons Delivery Inc. purchased a new delivery truck for $45,000 on January 1, 201

Question

Irons Delivery Inc. purchased a new delivery truck for $45,000 on January 1, 2019. The truck is expected to have a $3,000 residual value at the end of its 5-year useful life. Irons uses the straight-line method of depreciation Required: Prepare the journal entry to record depreciation expense for 2019 and 2020. 2019 Dec. 31 Depreciation Expense 8,400 Accumulated Depreclation (Record straight-line depreciation expense) 8,400 2020 Dec. 31 Depreciation Expense v 16,800 X Accumulated Depreciation (Record straight-line depreciation expense) 16,800 X

Explanation / Answer

Journal entry :

Date account and explanation debit credit 2019, dec 31 Depreciation expense (45000-3000/5) 8400     Accumlated depreciation 8400 (To record straight line depreciation) 2020, Dec 31 Depreciation expense 8400     Accumlated depreciation 8400 (To record straight line depreciation)

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