Financial Accounting Home Work 3 HW Question

Zubaidah Abdul Rehman 20042080

Swanton Com an! urcha"ed a new machine at a co"t o# $%20000& 'he e"timated "al(age (alue i" $%2000& 'he machine i" e) ected to be u"ed #or %0000 working hour" during it" #i(e !ear"& Com ute and record the de reciation u"ing "traight line* unit o# acti(it! and declining+balance method"& HW Answer Section %, /e reciation 0 Straight+-ine .ethod %20000+%2000 2 4ntr! Recording /e reciation 4) en"e Accumulated /e reciation 3ear 2 /e reciation 4) en"e Accumulated /e reciation 3ear 3 /e reciation 4) en"e Accumulated /e reciation 3ear 4 /e reciation 4) en"e Accumulated /e reciation 3ear 2 /e reciation 4) en"e Accumulated /e reciation Section 2, 5nit"+o#+Acti(it! .ethod 2%100 2%100 2%100 2%100 2%100 2%100 2%100 2%100 0 2%100

3ear 3ear %

/r& 2%100

Cr& 2%100

A""uming that e) ected hour" were6 3ear % 2000* 3ear 2 3000* 3ear 3 4000* 3ear 4 2000* and 3ear 2 10007 we calculate it below6 /e reciation 0 %20000+%2000 %0000 0 %0&8

3ear 3ear %

4ntr! Recording8Com utation Com utation 0 %0&8 ) 2000 0 2%100 /e reciation 4) en"e Accumulated /e reciation

/r&

Cr&

2%100 2%100

9age % o# 2

Financial Accounting Home Work 3 3ear 2 Com utation 0 %0&8 ) 3000 0 32400 /e reciation 4) en"e Accumulated /e reciation 3ear 3 Com utation 0 %0&8 ) 4000 0 43200 /e reciation 4) en"e Accumulated /e reciation 3ear 4 Com utation 0 %0&8 ) 2000 0 24000 /e reciation 4) en"e Accumulated /e reciation 3ear 2 Com utation 0 %0&8 ) 1000 0 14800 /e reciation 4) en"e Accumulated /e reciation Section 3, /eclining+:alance .ethod % 2 ; %00< 20

Zubaidah Abdul Rehman 20042080

32400 32400

43200 43200

24000 24000

14800 14800

/eclining+:alance Rate 0

/ouble+/eclining :alance 0 20 ) 2 0 40< :ook Accumulated /e reciation 48000 >1800 ?4080 %04448 %08000 =alue 4nd o# the 3ear >2000 43200 22?20 %2222 %2000

:ook =alue 3ear :eginning o# the 3ear % 2 3 4 2 %20000 >2000 43200 22?20 %2222 40< 40< 40< 40< 40< /e reciation Rate

Annual /e reciation 4) en"e 48000 28800 %>280 %0318 @3222

@Com utation o# 1220&8 A%2222 ) 40<, i" adBu"ted to 3222 in order #or book (alue to eCual "al(age (alue&

9age 2 o# 2