Homework Answers
Answer
| Answer 1 | ||
| Asset's Cost | $ 20,200 | |
| Accumulated Dep - SYD Method to date | $ 6,564 | |
| Book Value - Jan 1, 2018 | $ 13,636 | |
| Salvage Value | $ 1,200 | |
| To be depreciated over remaining 8 Years | ||
| Annual Dep. Under straight line method - ($13636 - $1,200) / 8 Years | $ 1,554 |
| Journal Entry | |||
| Date | Particulars | Dr. Amt. | Cr. Amt. |
| 1 | Depreciation Expenses Dr. | $ 1,554 | |
| To Accumulated Depreciation | $ 1,554 | ||
| Answer 2. | ||
| Asset's Cost | $ 20,200 | |
| Accumulated Dep - Straight line Method to date | $ 3,800 | |
| Book Value - Jan 1, 2018 | $ 16,400 | |
| Salvage Value | $ 1,200 | |
| To be depreciated over remaining 8 Years | ||
| Annual Dep. Under SYD Meethod - ($16400 - $1,200) X 8/36 | $ 3,378 |
| Journal Entry | |||
| Date | Particulars | Dr. Amt. | Cr. Amt. |
| 1 | Depreciation Expenses Dr. | $ 3,378 | |
| To Accumulated Depreciation | $ 3,378 | ||
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