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

Name: Task 5Using the information from your worksheet above, prepare approp
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Description: Task 5Using the information from your worksheet above, prepare appropriate journal entries to record the sale ofthe computers on 28 February 2021 for $19,800 cash (inclusive of GST). Please check your textbook toprovide the correct procedure of the

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
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