In order to hard reset a Motorola V500, you should perform the following steps.
Remember! Hard reset will delete all the data on your device; pictures, contacts, messages, apps and more.
Motorola V500 device will be brought back to the default configuration of a brand new device.
1. Press-hold the Power button until the phone turns on.
2. Now enter Menu > Settings > Initial setup > Master reset
3. You now need to enter Security Menu. To do this, tap in the lock code (0000 or 1234 by default). Press Left Softkey to confirm the process.
4. Good job, your phone should now reset and reboot.