Adjusting journal entry:

The vehicle that was contributed has a useful life of 5 years with a $2,000 salvage value. The company has decided to use the double declining balance method for depreciating these assets. The company treats all assets contributed or purchased during the month as being placed in service on the first day of the month for depreciation purposes.

Vehicle cost: 28,000

Original journal entry:

To record owner investment of cash and vehicle in exchange for common stock 101 Debit Cash 28,000.00

To record owner investment of cash and vehicle in exchange for common stock 153 Debit Office technology equipment 8,200.00

To record owner investment of cash and vehicle in exchange for common stock 163 Debit Vehicles 28,000.00

To record owner investment of cash and vehicle in exchange for common stock 305 Credit Common stock 64,200.00