On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an expected useful life of 4 years and a residual value of $3,000 plus GST and assuming the balance day is 30 June. As per organizational policy, the business has decided to use the Reducing Balance Method to depreciate the computers. Calculate the depreciation by using the Reducing Balance Method. Task 4 Calculate the depreciation, for the financial years ended 30 June 2018, 2019 and 2020. The rate of depreciation is 30% pa. Answer: + Asset Cost: Less: Residual Value Depreciable Amount Depreciation method Depreciation p.a: Date Computers Depreciation Worksheet - Snow Lake Pty Ltd Asset Cost Depreciation Accumulated Depreciation Carrying Amount at the end
On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an expected useful life of 4 years and a residual value of $3,000 plus GST and assuming the balance day is 30 June. As per organizational policy, the business has decided to use the Reducing Balance Method to depreciate the computers. Calculate the depreciation by using the Reducing Balance Method. Task 4 Calculate the depreciation, for the financial years ended 30 June 2018, 2019 and 2020. The rate of depreciation is 30% pa. Answer: + Asset Cost: Less: Residual Value Depreciable Amount Depreciation method Depreciation p.a: Date Computers Depreciation Worksheet - Snow Lake Pty Ltd Asset Cost Depreciation Accumulated Depreciation Carrying Amount at the end
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.8E: Depreciation On July 1, 2016, Dexter Corp. buys a computer system for $260,000 in cash. Assume that...
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Transcribed Image Text:Task 5
Using the information from your worksheet above, prepare appropriate journal entries to record the sale of
the computers on 28 February 2021 for $19,800 cash (inclusive of GST). Please check your textbook to
provide the correct procedure of the journal entries for disposal.
Answer:
Date
General Journal
Particulars
Debit
Credit
I
Transcribed Image Text:On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an
expected useful life of 4 years and a residual value of $3,000 plus GST and assuming the balance day is 30
June. As per organizational policy, the business has decided to use the Reducing Balance Method to
depreciate the computers. Calculate the depreciation by using the Reducing Balance Method.
Task 4
Calculate the depreciation, for the financial years ended 30 June 2018, 2019 and 2020. The rate of
depreciation is 30% pa.
Answer:
Asset Cost:
Less: Residual Value
Depreciable Amount
Depreciation
method
Depreciation p.a:
Date
Computers Depreciation Worksheet - Snow Lake Pty Ltd
Asset Cost
Depreciation
Accumulated
Depreciation
Carrying Amount at
the end
F
M
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