Question

Balance Sheet (Partiall: Estimated Residual Depreciation Deprsciation 7,200 8 years Nov. 3, 2018 Dec. 1, 2018 Dec, 1, 2018 120.000 Building 6,720 8 years 70 1 600
Please fill out the balance sheet

Answer 1

Answer

• All working forms part of the answer
• Requirement

Property, Plant & Equipment:
Land		$             120,000
Canoes	$                13,920
Less: Accumulated Depreciation Canoes	$                   1,090	$               12,830
Building	$              169,000
Less: Accumulated Depreciation Building	$                   6,300	$             162,700
Computer	$                   9,000
Less: Accumulated Depreciation Computer	$                   1,000	$                 8,000
Office Furniture	$                   5,800
Less: Accumulated Depreciation Office Furniture	$                      140	$                 5,660
Property, Plant & Equipment, NET		$             309,190

• Workings

---Canoes

Working		Acquired on 3 Nov 2018	Acquired on 2 Dec 2018
A	Depreciation expense per month	$                  75	$                      70
B	No. of months till 30 June 2019	8	7
C = A x B	Accumulated Depreciation - Canoes	$               600	$                    490

---Building: $900 per month
Dec 2018 to 30 June 2019 = 7 months
Accumulated Depreciation = 900 x 7 = $ 6,300

--Computer

A	Cost	$              9,000.00
B	Residual Value	$                  900.00
C=A - B	Depreciable base	$              8,100.00
D	Life [in years]	6
E=C/D	Annual SLM depreciation	$              1,350.00
F=E/C	SLM Rate	16.67%
G=F x 2	DDB Rate	33.33%

Year	Beginning Book Value	Depreciation rate	Depreciation expense
1	$                9,000.00	33.333333%	$ 1000.00 [9000 x 33.33333% x 4months /12months]

---Furniture

Accumulated depreciation = ((5800 – 1600)/10 years ) x 4months/12 months
= $ 140