Question
On March 31 a post closing trial balance was completed On April 4, the business purchased a new truck on account. The residual value is $2400, and the estimated useful life is 5 years. How do I enter this information into a general journal? Do I even need to calculate the depreciation at the beginning of the month?
Answers
huy
general journal
Truck 2400
Account payable 2400
And about the depreciation, it should be calculated at the end of the month not at the beginning of the month.
Truck 2400
Account payable 2400
And about the depreciation, it should be calculated at the end of the month not at the beginning of the month.