Lecture 9worksheet_NCA

Whatisthejournalentryforthepurchaseoftheasset

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Equipment $3,500 $1,200 to repair broken saw not covered by insurance or warranty Required: Journalise the acquisition of the asset & R&M charges 2 Lecture 9 worksheet NCA What is the cost of acquisition? What is the journal entry for the purchase of the asset? What is the journal entry for the R&M? What is depreciation? (see slides 27 – 32) Note your answer here: What are the 3 main methods of depreciation? (see slides 33 – 36) Note your answer here: 3 Lecture 9 worksheet NCA How do we calculate the straight line depreciation method? Use the lecture example (slide 38) Cost of acquisition: $40,000; Useful life: 5 years; Residual value: $5,000 Show the journal to record the depreciation? Dr CR Calculate the reducing balance method for depreciation (slide 41) Cost $40,000 depreciation rate 25% Use the units of production method to calculate the deprecation for each year? Machine cost 25,000 produces 10,000 over its 4 yr useful life: 3500 yr 1; 4000 yr 2; 1500 yr 3; & 1,000 yr 4. Draw a depreciation schedule to show the deprecation charged each year? 4...
View Full Document

Ask a homework question - tutors are online