Calculating Depreciation II

Slides:

Advertisements

Similar presentations

Dr. Mohamed A. Hamada Lecturer of Accounting Information Systems 1-1 Chapter 6 Depreciation.

Advertisements

Depreciation. Long Term Assets  So far, we looked at adjustments for supplies, prepaid expenses such as insurance, late invoices and unearned revenue.

8.4 Depreciation. What is Depreciation? Decreasing the value of a fixed asset over its useful life.

DEPRECIATION Section: Advanced Agribusiness Unit: Depreciation Lesson Titles: Understanding Depreciation.

Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?

 What is it?  First let’s remember our definition for an expense  Something that we spend money on to make money  Based on this definition shouldn’t.

Note 4: Depreciation Depreciation occurs over time as the value of a commodity or object decreases. Example, the value of a new car. Diminishing Value.

Objective To calculate percentage increase and decrease.

Agribusiness Library LESSON L060091: CALCULATING DEPRECIATION.

Chapter 9 – Completing the Accounting Cycle

Accounting 3 Chapter 21 Section 5. Declining Balance Method of Depreciation  Declining-Balance Method of Depreciation – Multiplying the book value of.

1 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use Straight Line Depreciation Stage 6 - Year 12 General Mathematics HSC.

Practical 3: MS Excel depreciation and Logical functions Gopalan Vivek

Depreciation Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation – used.

Chapter 8! The Accounting Cycle Work Sheet and Adjusting Process Unit 4 Quest (chapter 8 and 10) will be on December 4 (Thursday) Youtube clip: “Episode.

Appendix Depreciation

Chapter 8! The Accounting Cycle Work Sheet and Adjusting Process Unit 4 Quest (chapter 8 and 10) will be on December 10 (Wednesday) Youtube clip: “Straight.

Chapter 8 – Completing the Accounting Cycle

Modelling Depreciation

Depreciation Chapter 22 Accounting II.

Depreciation Is depreciation a revenue or expense? What types of items get depreciated? –L–L Depreciation –A–A Why depreciate something?

Exponential Depreciation

Chapter 3! The Adjusting Entry Unit 1 Test (cover chapter 1 to 4) will occur on Friday September 26!

Depreciation is the part of the original COST of the FIXED ASSETS CONSUMED during its period of use by a firm.FIXED ASSETS.

3.10 Using % Goals: to solve a word problem including % of increase and decrease.

BAF 3M: CHAPTER 6 DEPRECIATION. AUTOMOBILE EXAMPLE Imagine a contracting company purchases a brand new work truck: Will this truck stay new: NO!

Sub topic and formula :  Percentage of increase, increase in value and final value.  Percentage of decrease, decrease in value and final value.  Profit.

Depreciation. Fixed assets A long term asset that is used up through the course of time Businesses need to account for the use of these objects, but have.

1 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use Declining Balance Depreciation Stage 6 - Year 12 General Mathematics HSC.

Declining Balance Method of Depreciation Multiplying the Book Value by a constant depreciation rate at the end of each fiscal period. A plant asset is.

EGR Depreciation Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation.

BAF3M Calculating Depreciation *There will be a note to copy at the end of the slides *

BAF3M Calculating Depreciation II. Homework check Page 348 Exercise 1 (A,B,C) Page 358 Exercise 4 (A,B)

1 Press Ctrl-A ©G Dear 2011 – Not to be sold/Free to use Depreciation Straight Line Stage 6 - Year 11 Applied Mathematic (Preliminary General 1)

Recall:  As we already know, during any fiscal period, the total equity of a business is contained in a number of accounts in the equity section of the.

Starter Questions 22/02/11 1.Write the following as a fraction & a decimal :- a.32%b. 63%c. 81% 2. Calculate the following :- a. 4% of £12b. 18% of £8.50.

Depreciation. Nature of Depreciation Fixed Assets for a business are expected to be used up in the course of time. Thus depreciating in value.depreciating.

Straight-Line Depreciation Allocates an equal amount of the depreciable cost based on time to each year (month) of the asset’s service life. Asset cost.

EGR Depreciation Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation.

QMT 3301 BUSINESS MATHEMATICS

LESSON 18-5 Declining-Balance Method of Depreciation

Reporting and Interpreting Long-Term Tangible

BAF3M Depreciation Expense.

LESSON 18-2 Calculating Depreciation Expense

LESSON 18-2 Calculating Depreciation Expense

Plant assets and depreciation

LESSON 14-5 Planning and Recording Depreciation Adjustments

Adjustments to financial statements 1

Plant and Intangible Assets

PLANT ASSETS Study Objective

HISTORICAL AND EXPONENTIAL DEPRECIATION

Fixed Assets and Depreciation

BUSINESS HIGH SCHOOL-ACCOUNTING II

STRAIGHT-LINE DEPRECIATION

A business uses plant assets for more than one accounting period, so it spreads the cost of these assets over a number of years. A business must also.

Chapter Five Appendix DEPRECIATION METHODS.

Welcome Back Atef Abuelaish.

Practice before a Percentage Change on finding the amount using a

LESSON 14-5 Planning and Recording Depreciation Adjustments

Valuing Assets and Using Depreciation for Closing Inventories.

Valuing Assets and Using Depreciation for Closing Inventories.

Test Tomorrow Have you got your assignments turned in?

Straight-Line Depreciation

DECLINING-BALANCE METHOD OF DEPRECIATION

Depreciation Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation – used.

Depreciation Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation – used.

Presentation transcript:

Calculating Depreciation II BAF3M Calculating Depreciation II

Homework check Page 348 Exercise 1 (A,B,C) Page 358 Exercise 4 (A,B)

Homework: Page 348 Exercise 1 (A,B,C)

Homework: Page 358 Exercise 4 (A,B)

The TWO main ideas on how to calculate depreciation: Straight Line Depreciation Declining Balance Depreciation

Straight Line Depreciation original cost – residual value ---------------------------------- years of life of the asset (Straight line depreciation spreads the use of our asset evenly over the amount of time it is used.)

Let’s say we bought a car… does it lose its value evenly? Declining Balance Let’s say we bought a car… does it lose its value evenly?

With declining balance, we take off a certain percentage each year. Year 1 Depreciation = 30% * $100,000 car = $30,000

Undepreciated Value of $70,000 Declining Balance Year 2 Depreciation Undepreciated Value of $70,000 x 30% = $21,000

Let’s look at a depreciation schedule… Declining Balance Let’s look at a depreciation schedule… 30% is taken off each year

Compare! (Straight Line vs. Declining Balance)

The TWO main ideas on how to calculate depreciation: Straight Line Depreciation Declining Balance Depreciation

Note: Depreciation With the exception of Land, all fixed assets are expected to be ‘used up’ over a certain period of time. These assets decrease (or depreciate) in value. Methods of Depreciation Straight-Line depreciation divides the price of an asset over its useful life. (minus its salvage or residual value) Declining Balance method decreases the value of an asset by a pre-determined percentage each fiscal period.

The following ‘Depreciation Schedules’ compare the two approaches. Declining Balance

Homework Page 348, Exercise 1 (D,E) Exercise 2 (A,B)