Depreciation is handled as an adjusting entry at the end of the period on the worksheet (just like supplies, prepaid insurance, etc). When joumalizing the depreciation for truck, we use a new account called Accumulated Depreciation. Journalize the adjustment for depreciation after the first year. (For this example, assume fiscal year end is the same as the calendar year). Date Truck Particulars P Debit Credit Accumulated Deprecation-Truck R Depreciation Expense Truck Depreciation expense appears on the Income Statement in the Operating Expenses section. Accumulated Depreciation appears on the Balance Sheet as follows: Fixed Assets Challenge yourself! Describe a way that calculating and recording depreciation could be used unethically by a business to misrepresent its financial statements (hint: think about the income statement and the balance sheet).