1. Accrual Based Accounting: Prepaid expenses Depreciation of Fixed Assets. Moving On, Inc. purchases a new moving truck (e.g. equipment) for $35,000 in cash on April 1^st, 2017. At the time of its purchase, the truck is expected to be used in operations for 5 years and will have no resale or scrap value at the end of its life. Moving On, Inc. uses straight-line depreciation (i.e. the asset depreciates evenly) over the expected life of the truck. Assume the end of Moving Ons annual accounting period is December 31^st, 2017 and all adjustments and adjusting entries are made only at the end of the accounting period on December 31^st(i.e. no adjusting entry for Depreciation expense has been made yet).
   1. Record the journal entry for the original purchase of the truck that occurs on April 1^st, 2017.
   2. Record the adjusting entry to recognize the Depreciation Expense on December 31, 2017.
   3. What will the ending balance of the Accumulated Depreciation-Equipment account be on December 31, 2018(Assume the beginning balance of Accumulated Depreciation-Equipment on January 1^st, 2017 is $0 and Moving On, In has no other assets that depreciate)?
   4. What will the net book value of the truck be on December 31, 2018?