Amy Washington is continuing to review business practices. Currently, she is reviewing the company's property, plant, and equ
ipment and has gathered the following information:
Estimated Residual Value $ 0 Estimated Life 4 years Monthly Depreciation E xpense Asset Depreciation Method SL nla $ Acquisition Date Nov 3, 2018 Dec 1, 2018 Dec 1, 2018 Dec 2, 2018 Mar 2, 2019 Mar 3, 2019 Canoes Land Building Canoes Computer Office Furniture Cost 7,680 110,000 104,000 4,800 3,600 2.400 20,000 10 years 4 years 4 years 5 years 400 1.200 SL = Straight-line, DDB = Double-declining balance
1. Calculate the amount of monthly depreciation expense for the computer and office furniture for 2019
2. For each asset, determine the book value as of December 31, 2018. Then, calculate the depreciation expense for the first six months of 2019 and the book value as of June 30, 2019
3. Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2019 Requirement
Estimated Residual Value $ 0 Estimated Life 4 years Monthly Depreciation E xpense Asset Depreciation Method SL nla $ Acquisition Date Nov 3, 2018 Dec 1, 2018 Dec 1, 2018 Dec 2, 2018 Mar 2, 2019 Mar 3, 2019 Canoes Land Building Canoes Computer Office Furniture Cost 7,680 110,000 104,000 4,800 3,600 2.400 20,000 10 years 4 years 4 years 5 years 400 1.200 SL = Straight-line, DDB = Double-declining balance
1. Calculate the amount of monthly depreciation expense for the computer and office furniture for 2019
2. For each asset, determine the book value as of December 31, 2018. Then, calculate the depreciation expense for the first six months of 2019 and the book value as of June 30, 2019
3. Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2019 Requirement
1 answer:
Answer:
* Data is Incomplete the picture of original question is attached and answer is made accordingly.
(1)
Double Declining Depreciation Rate = (Depreciation Expense / Depreciation base ) x 2
Computer
Double Declining Depreciation Rate = [(( 3600 - 400 ) / 4 ) x 2] / 12 = $133.33
Office Furniture
Double Declining Depreciation Rate = [(( 2400 - 1200 ) / 5 )] / 12 = $20
(2) Book value as of December 31, 2018
Canoes = 7,680 - ( 160 x 2 ) = $7,360
Land = 110,000
Building = 104,000 - 700 = 103,300
Canoes = 4,800 - 400 = 4,400
Computer = 0
Office Furniture = 0
Expense for The six Months June 30 , 2019
Canoes = 260 x 6 = 1,560
Land = 110,000 x 0 = 0
Building = 700 x 6 = 420
Canoes = 100 x 6 = 600
Computer = 4 x 133.33 = 533.32
Office Furniture = 20 x 4 = 80
(3) Balance sheet as of June 30, 2019
Canoes ( 7360 - 1560 ) $5,800
Land $110,000
Building ( 130,300 - 420 ) $129,880
Canoes ( 4,400 - 600 ) $3,800
Computer ( 3,600 - 533 ) $3,067
Office Furniture (2,400 - 80 ) <u>$2,320</u>
Total Property plant and Equipment <u>$254,867</u>
You might be interested in