Let’s go over Depreciation before the test on

Depreciation The cost of the non current asset less how much we think we will sell it ÷ how long we will have it. Cost less Sale Value Useful life

Restoration Doors purchased a new photocopier $6000 to be sold for $300 in 4 year Cost less Sales value Useful life 6000 – = $1425 Depreciation Expense per year

Reporting Depreciation Expense Restoration Doors Income Statement For the month ending 30 May 2012 Revenue Cash Sales9000 Less Expenses Wages1000 Other Expenses5000 Depreciation Expense Profit575

Accumulated Depreciation Every year that a business owns a Non Current Asset, the Depreciation Expense is added together (or Accumulated). This is to estimate how much the Non Current Asset has worn out over its useful life.

Reporting Accumulated Depreciation Restoration Doors Balance Sheet (extract) As at 30 th May 2012 Non Current Assets Photocopier6000 Less Accumulated Depreciation

Reporting Accumulated Depreciation after 2 years Restoration Doors Balance Sheet (extract) As at 30 th May 2013 Non Current Assets Photocopier6000 Less Accumulated Depreciation

Reporting Accumulated Depreciation after 3 years Restoration Doors Balance Sheet (extract) As at 30 th May 2014 Non Current Assets Photocopier6000 Less Accumulated Depreciation

Calculating Accumulated Depreciation YearDepreciation Expense Accumulated Depreciation

Make sure you have completed All the Depreciation Exercises – Topline, CBD, P. Doyle Handed in the Dell Luggage Exercise (which is a photocopy and not on the computer). Completed your Depreciation Homework K. Harrison and handed it in. Have some notes to take home to study before you do the Depreciation Test.