On january 1, 2017, salt creek country club purchased a new riding mower for $15,700. the mower is expected to have a 10-year life with a $2,400 salvage value. what journal entry would salt creek make on december 31, 2017, if it uses straight-line depreciation? (credit account titles are automatically indented when amount is entered. do not indent manually. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)

Salt Creek needs to make a journal entry to record full one-year depreciation expenses relating to the mower at 31 Dec 2017 as followed:

Dr Depreciation expenses - Machinery                 $1,330

  Cr Accumulated Depreciation - Machinery         $1,330

Explanation:

The depreciation annual depreciation expenses relating to the Mower, in case it is determined by straight-line method, will be calculated as followed:

Annual depreciation expenses = (Initial cost of Mower - Estimated Salvage value) / Expected useful life = (15,700 - 2,400) /10 = $1,330

Since the Mower is purchase at 1 Jan 2017, in 31 Dec 2017, Salt Creek should make a journal entry to record full-year depreciation expense.  

answer; /// i believe the correct answer is first in, first out(fifo); //