Gold Co. purchased a vehicle on March 1, 2023, for cash of $32,000. It will be used by the president for business purposes for four years and then sold for an estimated amount of $8,000. Gold Co.’s year-end is December 31.
a. Record the journal entry on March 1, 2023.
b. Using the straight-line depreciation method, calculate the depreciation expense for March 1, 2023 to December 31, 2023.
c. To prepare the 2023 annual financial statements, record the adjusting entry for December 31, 2023.
d. Using the straight-line depreciation method, calculate the depreciation expense for January 1, 2024 to December 31, 2024.
e. To prepare the 2024 annual financial statements, record the adjusting entry for December, 31, 2024.