Week 3 Accounting assignment 2

Week 3 Accounting assignment 2 - Accounting 1 Accounting:...

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Accounting 1 Accounting: Week 3 Assignment 2 Corriene Power ACC201: Principles of Financial Accounting Mrs. Regina Ivory January 8, 2011
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Accounting 2 6-27 A. Depreciation of van 35,500-5500/150,000 = Cost per mile Miles driven Depreciation expense 2010 .20 50,000 $10,000 2011 .20 70,000 $14,000 2012 .20 58,000 $6,000 B. Assets = EQUITY Rev - Exp. Net. Incom e Cash Flow Cash Van - Acc. Depr. Commo n Stock Retaine d earning s 50000 50000 (35,50 0) 35,500 (35,50 0) 21000 21000 21000 21000 21000 - 10,000 (10000) 10,000 (10000 ) Totals
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35500 35,500 -10000 50,000 11,000 21000 10000 1100 14,500 C. Sell = 4,000 Cost = 35,500 Depreciation = 30,000 35,500 – 30,000 = 5,500 4, 000 – 5,500 = -1,500 (loss) 6-28 Company A uses straight line depreciation Cost of Machine = 42,000 Expectation 5 years or 200,000 hours Accounting 3 Salvage Value = 2,000 50,000 = 2008 55,000 =2009 40,000 =2010 44,000 = 2011 31,000 = 2012 30, 000 cash revenues each year for 5 years Depreciation expense calculation:
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42,000 – 2000 = 40,000/ 5 = 8,000 per year Assets Equity Rev. Exp. Net. Income
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This note was uploaded on 01/28/2011 for the course ACC 201 taught by Professor Alao during the Spring '10 term at Ashford University.

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Week 3 Accounting assignment 2 - Accounting 1 Accounting:...

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