Example of Depreciation

Scenario:
On October 1, 2003, Mythical purchased a new delivery truck for $12,000.
It is to be depreciated using the straight-line method over four years and
it is estimated that there will be no salvage value at that time.

What account is credited when depreciation expense is debited?
Enter your answer in lower case characters only

:The credit side of a depreciation expense entry

How many months of depreciation expense should Mythical record in the
current year?

:Number of months of depreciation expense

How much depreciation expense should Mythical record for each month?
Enter your amount as $XXX

:Amount of monthly depreciation expense

How much depreciation expense should Mythical record during the
year ended December 31, 2003?
Enter your amount as $XXX

:Total amount of depreciation expense for 2003

What account will Mythical debit in their adjusting entry?
Use only lower case characters

:Account debited in the year-end depreciation adjusting entry

Jim Formosa 2002