FIXED ASSETS DEPRECIATION (Use Straight Line Method of Depreciation) Date of Purchase Estimated Acquisition Cost Description Life

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Activity 8
FIXED ASSETS DEPRECIATION
(Use Straight Line Method of Depreciation)
Date of
Purchase
Acquisition
Cost
Estimated
Description
Life
Mar 14, 2021 4 units Computer Desktops
150,000
15,000
180,000
2
3 units Printers L120
2.
Jan 2, 2021
Jan2, 2021
3 units Aircon
4units Filing Cabinets
24,000
4units Office Tables
12,000
4units Swivel Chairs
14,000
April 29,2021 12unit: Plastic Chairs
Feb 10, 2021 1 unit Delivery Van, 2nd hand
1 unit Automobile, Ford
3,600
75,000
10
500,000
10 (s/ value, P50,000)
Apr 1, 2021
Jan 5,2021
Sep 15, 2021 1 unit Copying machine
2 units Stand Fans
3,000
2 units Corner cabinet
2,000
48,000
Dec 29,2020
1 Building (used as office)
984,000
15
Required:
1. Prepare a Depreciation Lapsing Schedule. (arrange and group it
into Office Equipment, Delivery Equipment, Building)
Columns are:
a. Date Of Purchase
b. Description
c. Acquisition Cost
d. Est
e. Book value 01.01.21
f. Columns from Jan to Dec 2021
g. Book value 12.31.2021
Life/Eco. Life
2. Prepare a journal entry for each month.
3. What is the book value of the delivery van as of December 31, 2021?
4. What is the book value of copying machine as of December 31, 2021?
5. What is the book value of the building as of December 31, 2021?
Transcribed Image Text:Activity 8 FIXED ASSETS DEPRECIATION (Use Straight Line Method of Depreciation) Date of Purchase Acquisition Cost Estimated Description Life Mar 14, 2021 4 units Computer Desktops 150,000 15,000 180,000 2 3 units Printers L120 2. Jan 2, 2021 Jan2, 2021 3 units Aircon 4units Filing Cabinets 24,000 4units Office Tables 12,000 4units Swivel Chairs 14,000 April 29,2021 12unit: Plastic Chairs Feb 10, 2021 1 unit Delivery Van, 2nd hand 1 unit Automobile, Ford 3,600 75,000 10 500,000 10 (s/ value, P50,000) Apr 1, 2021 Jan 5,2021 Sep 15, 2021 1 unit Copying machine 2 units Stand Fans 3,000 2 units Corner cabinet 2,000 48,000 Dec 29,2020 1 Building (used as office) 984,000 15 Required: 1. Prepare a Depreciation Lapsing Schedule. (arrange and group it into Office Equipment, Delivery Equipment, Building) Columns are: a. Date Of Purchase b. Description c. Acquisition Cost d. Est e. Book value 01.01.21 f. Columns from Jan to Dec 2021 g. Book value 12.31.2021 Life/Eco. Life 2. Prepare a journal entry for each month. 3. What is the book value of the delivery van as of December 31, 2021? 4. What is the book value of copying machine as of December 31, 2021? 5. What is the book value of the building as of December 31, 2021?
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