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I can not find the cost of computer equipment and office eqipment. The fixed assets have estimated useful lives as follows:

I need help finding the depreciation.I can not find the cost of computer equipment and office eqipment.

32. The fixed assets have estimated useful lives as follows: 

Computer Equipment - 5.0 years 

Office Equipment - 7.0 years 

Use the straight-line method of depreciation. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The office equipment has a scrap value of $500. The computer equipment has no scrap value. Calculate the depreciation for one month.

These are the transactions 

  01 June 1:  Byte of Accounting, Inc. acquired $70,000 in cash from Lauryn and issued 2,800 shares of its common stock.


 02.June 1: Byte of Accounting, Inc. issued 2,570 shares of its common stock after $26,250 in cash and computer equipment with a fair market value of $38,000 were received


 03.June 1: Byte of Accounting, Inc. issued 1,877 shares of its common stock after acquiring from Courtney $31,250 in cash, computer equipment with a fair market value of $14,500 and office equipment with a fair value of $1,175.


 04.June 2: A down payment of $34,000 in cash was made on additional computer equipment that was purchased for $170,000. A five-year note was executed by Byte for the balance.


 05.June 4: Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation.


 06.June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte.


 07.June 10: Byte paid $26,000 on the balance it owed on the June 2 purchase of computer equipment.


 08.June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $6,480 in cash. The effective date of the policy was June 16.


 09.June 16: A check in the amount of $8,250 was received for consulting revenue. 


10.June 16: Byte purchased a building and the land it is on for $107,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $10,700 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1.


 11.June 17: Cash of $5,000 was paid for rent for June and July. Put the total amount into the Prepaid Rent account.


 12.June 17: Received a bill of $325 from the local newspaper for advertising.


 13.June 21: Accounts payable in the amount of $400 were paid.


 14.June 21: A fax machine for the office was purchased for $700 cash.


 15.June 21: Billed various miscellaneous local customers $4,100 for consulting services performed. 


16.June 22: Paid salaries of $960 to equipment operators for the week ending June 18.


 17.June 22: Received a bill for $1,290 from Computer Parts and Repair Co. for repairs to the computer equipment.


 18.June 22: Paid the advertising bill that was received on June 17.


 19.June 23: Purchased office supplies for $705 on credit. Record the purchase as an increase to the assets.


 20.June 23: Cash in the amount of $3,285 was received on billings.


 21.June 28: Billed $5,910 to miscellaneous customers for services performed to June 25.


 22.June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co.


 23.June 29: Cash in the amount of $5,600 was received for billings.


 24.June 29: Paid salaries of $960 to equipment operators for the week ending June 25.


 25.June 30: Received a bill for the amount of $915 from O & G Oil and Gas Co.


 26.June 30: Paid a cash dividend of $0.21 per share to the three shareholders of Byte. [IMPORTANT NOTE: The number of shares of capital stock outstanding can be determined from the first three transactions.]

Top Answer

Computer equipment Annual depreciation = $248 , 500 / 5 = $49 , 700  Monthly depreciation = $49 , 700 / 12 = $4 , 141 . 67... View the full answer

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