Straight-Line Depreciation

Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expected to have a $2,000 residual value at the end of its 5-year useful life. Irons uses the straight-line method of depreciation.

Required:

Prepare the journal entry to record depreciation expense for 2019 and 2020.

2019 Dec. 31

Depreciation Expense

Accumulated Depreciation

(Record straight-line depreciation expense)

2020 Dec. 31

Depreciation Expense

Accumulated Depreciation

(Record straight-line depreciation expense)