Plant Assets, Natural
This presentation is the property of its rightful owner.
Sponsored Links
1 / 9

Chapter 10 PowerPoint PPT Presentation


  • 60 Views
  • Uploaded on
  • Presentation posted in: General

Plant Assets, Natural Resources, and Intangible Assets. Chapter 10. Accounting Principles, Ninth Edition. Depreciation. Declining-Balance. Decreasing annual depreciation expense over the asset’s useful life. Declining-balance rate is double the straight-line rate.

Download Presentation

Chapter 10

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Chapter 10

Plant Assets, Natural

Resources, and

Intangible Assets

Chapter10

Accounting Principles, Ninth Edition


Depreciation

Depreciation

Declining-Balance

  • Decreasing annual depreciation expense over the asset’s useful life.

  • Declining-balance rate is double the straight-line rate.

  • Rate applied to book value.

Illustration 10-13

SO 3 Compute periodic depreciation using different methods.


Depreciation1

Depreciation

Illustration: (Declining-Balance Method)

Illustration 10-14

2010

13,000

40%

$ 5,200

$ 5,200

$ 7,800

2011

7,800

40

3,120

8,320

4,680

2012

4,680

40

1,872

10,192

2,808

2013

2,808

40

1,123

11,315

1,685

2014

1,685

40

685*

12,000

1,000

2010 Journal Entry

Depreciation expense 5,200

Accumulated depreciation5,200

* Computation of $674 ($1,685 x 40%) is adjusted to $685.


Depreciation2

Depreciation

Comparison of Depreciation Methods

Illustration 10-15

Illustration 10-16

SO 3 Compute periodic depreciation using different methods.


Depreciation for partial year

Depreciation for Partial Year

The following five slides are included to illustrate the calculation of partial-year depreciation expense.

The amounts are consistent with the previous slides illustrating the calculation of depreciation expense.

SO 3 Compute periodic depreciation using different methods.


Depreciation for partial year1

Depreciation for Partial Year

Illustration: Barb’s Florists purchased a small delivery truck on October 1, 2010.

Illustration 10-7

Required:Compute depreciation using the following.

(a) Straight-Line.

(b) Units-of-Activity.

(c) Declining Balance.

SO 3 Compute periodic depreciation using different methods.


Depreciation for partial year2

Depreciation for Partial Year

Illustration: (Straight-line Method)

SO 3 Compute periodic depreciation using different methods.


Depreciation for partial year3

Depreciation for Partial Year

Illustration: (Units-of-Activity Method)

Illustration 10-12

2010

15,000

$ 0.12

$ 1,800

$ 1,800

$ 11,200

2011

30,000

0.12

3,600

5,400

7,600

2012

20,000

0.12

2,400

7,800

5,200

2013

25,000

0.12

3,000

10,800

2,200

2014

10,000

0.12

1,200

12,000

1,000

2010 Journal Entry

Depreciation expense 1,800

Accumulated depreciation 1,800

SO 3 Compute periodic depreciation using different methods.


Depreciation for partial year4

Depreciation for Partial Year

Illustration: (Declining-Balance Method)

SO 3 Compute periodic depreciation using different methods.


  • Login