Lecture 9worksheet_NCA

# Whatisthejournalentryforthepurchaseoftheasset

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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...
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## This note was uploaded on 01/22/2011 for the course ACCT 4E taught by Professor Helenlin during the Three '09 term at University of New South Wales.

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