Acc 151 test 4

Acc 151 test 4 - Accounting Test 4 Chapter 8 Depreciation...

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Accounting Test 4 Chapter 8 Depreciation Methods - Straight-Line Methods o Cost- Salvage Value / Useful Life in periods o Adjustment: dr. Depreciation expense, cr. Accumulated Depreciation (to record annual depreciation) o Adjusting entry mad at end of each year (Dec. 31) - Units-of-Production Method o Changes varying amount to expense for each period of an asset’s useful life, pending usage. o Two step process Step 1:: depreciation per unit = Cost- Salvage Value /total units of production Step 2:: Depreciation Expense= Depreciation per unit (step 1) x unite produced in a period - Double - Declining balance o Three Steps Step 1:: compute the asset’s straight-line deprecation rate Step 2:: double the straight-line rate Step 3:: compute deprecation expense by multiplying this rate by the asset’s beginning-of-period book value. 1. Straight-line rate= 100%/ useful life 2. D-D-B rate= Straight-line rate (1) x 2 3. Deprecation expense= D-D-B rate x beginning-period book value (of each year) Partial Year Depreciation - Straight line (take straight line depreciation method and then multiply by amount of months used/12) - Double declining balance ( calculate everything same except book value [first year book val - DDB rate x amount of months depr./12) Gain/Loss on Disposal of Fixed Assets - Disposal of assets
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Acc 151 test 4 - Accounting Test 4 Chapter 8 Depreciation...

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