Woodlawn - Part 5 (1)

Woodlawn - Part 5 (1) - Woodlawn Engineering Part 5...

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Woodlawn Engineering Part 5 – Long-lived Assets Office Equipment DR. Depreciation Expense $4,740 CR. Accumulated Office Equipment Depreciation $4,740 The depreciation of office equipment was calculated by first determining the carrying value of the office equipment. After, the cost of the new office equipment was added to the carrying value then depreciation on a declining-balance basis at a rate of 20% per year. Calculations: ($85,829.89 – $64,827.32) + $2,697.50(new office equipment) $21,002.57 + $2,697.50 = $23,700.07 Using the declining-balance basis at a rate of 20% per year gives us $4740.01 Furniture and Fixtures DR. Depreciation Expense $25,563 CR. Accumulated Depreciation – Furniture and fixtures $25,563 Calculations: $346,971.37 (2009) - $223,768.15 = $123,203.22 (Net Book Value) $123,203.22 + $4,614.41 = $127,817.63 @ 20% = $25,563.26 Business Information Systems DR. Loss on Disposal of Capital Assets $2,500 CR. Repairs and Maintenance Expense $2,500 DR. Loss on Disposal of Capital Assets
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This note was uploaded on 03/29/2011 for the course ACCT 3330 taught by Professor Scott during the Winter '11 term at University of Guelph.

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Woodlawn - Part 5 (1) - Woodlawn Engineering Part 5...

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