Accounting Help for me

E-18-2A

E 18-2A (year 1, SL, $3,000, DDB $6,750)

Straight Line, Declining Balance and Sum of The Years Digits Methods. A light truck was purchased on Jan. 1 at a cost of $27,000. It is expected to serve for 8 years and have a salvage value of $3,000. Calculate the depreciation expense for the first and third years of the trucks life using the following methods.

1. Straight line

2. Double declining balance (round to two decimal places).

3. Sum of the years digits (round to two decimal places).

2

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16-9A

pts.

1

pense

,10

7,104

x

5,200

0%

GENERAL JOURNAL

Date Account Debit Credit
20–

Dec. 31

Allowance for Bad Debts 6,620

Calculations:

Accounts receivable, December 31, 20– $ 30,000

Allowance for bad debts, new balance 6,950
Net realizable value

GENERAL JOURNAL

Date Account Debit Credit
20–

Dec. 31 Bad Debt Expense

Allowance for Bad Debts 5,328

Calculations:
Credit Sales x Percentage

Adjustment Amount

$ 355,200

5%

Accounts receivable, December 31, 20– $ 30,000

Allowance for bad debts, new balance

Net realizable value

GENERAL JOURNAL

Date Account Debit Credit
20–

Dec. 31 Bad Debt Expense

Allowance for Bad Debts 6,085

Calculations:

Estimate through analysis (provided)

Allowance for bad debts, previous balance

Adjustment amount

Accounts receivable, December 31, 20– $ 30,000

Allowance for bad debts, new balance 5,685
Net realizable value

																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																					Problem				Name:
1			0
1a.
				GENERAL JOURNAL
				Date					Account					Debit					Credit
			20–
			Dec.							3	Bad Debt E									x					7			4
			Allowance for Bad Debts
			Calculations:
	Credit Sales				Percentage								=		Adjustment Amount
	$ 3			5			2.	$7,104
			Accounts receivable, December 31, 20–				$ 30,000
			Allowance for bad debts, new balance	7,434
			Net realizable value	$ 22,566
1b.
				Bad Debt Expense		6,620
	Estimate through analysis (provided)	$	6,950
	Allowance for bad debts, previous balance	330
	Adjustment amount	$ 6,620
$ 23,050
2a.
	5,32								8
	=
		1.	$ 5,328
4,928
$ 25,072
2b.
	6,085
$	5,685
400
$ 6,085
$ 24,3			15

E18-2A

Name:

1.

ly

2.
Estimated Life Percentage

/ years =

x 2

x

= Depreciation

Year 1
Year 3

x

8 9

Original Cost – Salvage Value =

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

Rate = Depreciation

Year 1 $ 27,000

Mark Sears: Enter as a formula

Year 3

25%
Mark Sears: Enter as a fraction

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

Exercise 18-2A

10pts.

Straight-Line Method

Original Cost

Salvage Value

Estimated Life

Year

Depreciation

years

Year 1

Year 3

Double-Declining-Balance Method

100%

Mark Sears: Enter as a formula

Double-declining rate

Book Value

Rate

Year 2

3.

Sum-of-the-Years’-Digits Method

[Life

(Life + 1)]

/ 2 =

Denominator

25% Mark Sears: Enter as a formula

Depreciable Cost

$ 27,000

3,00

$ 24,000 Mark Sears: Enter as a formula

Depreciable Cost x

25% Mark Sears: Enter as a fraction

2/25 Mark Sears: Enter as a formula

$ 20,225

5/56

P18-7A

Name:

1.
Straight-Line Method

Original Cost Salvage Value Estimated Life

8 years

Mark Sears: Enter as a formula

Year

Book Value

0 $ 59,000
1 $ 7,000

2 $ 7,000

3 $ 7,000

4 $ 7,000

5 $ 7,000

6 $ 7,000

7 $ 7,000

8 $ 7,000

2.
Double-Declining-Balance Method

Estimated Life Percentage

100% / 8 years =

x 2

Double-declining rate

Mark Sears: Enter as a formula

Year Annual Depreciation Book Value

Book Value x Rate = Depreciation

0

1 $ 59,000.00 25.0%

2

25.0%

3

25.0%

4

25.0%

Mark Sears: Enter book values for Years 1-8 as formulas

5

25.0%

Mark Sears: Enter book values for Years 1-8 as formulas

6

25.0%

Mark Sears: Enter book values for Years 1-8 as formulas

7

25.0%

Mark Sears: Enter book values for Years 1-8 as formulas

8

25.0%

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter book values for Years 1-8 as formulas

3.
Sum-of-the-Years’-Digits Method

[Life x (Life + 1)] / 2 = Denominator

8 9

Mark Sears: Enter book values for Years 1-8 as formulas

Original Cost – Salvage Value = Depreciable Cost

$ 59,000 $ 3,000

Year Annual Depreciation Book Value

Depreciable Cost
x Rate = Depreciation

0 $ 59,000.00

1

2 $ 56,000.00

3 $ 56,000.00

Mark Sears: Enter as a formula

4 $ 56,000.00

Mark Sears: Enter as a formula

5 $ 56,000.00

Mark Sears: Enter as a formula

6 $ 56,000.00

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter as a formula

7 $ 56,000.00

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter as a formula

8 $ 56,000.00

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter as a formula

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter as a formula

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter book values for Years 1-8 as formulas

Problem 18-7A 10pts.

Yearly Depreciation

$ 59,000

$ 3,000

$ 7,000

Annual Depreciation

52,000 Mark Sears: Enter book values for Years 1-8 as formulas

45,000 Mark Sears: Enter book values for Years 1-8 as formulas

38,000 Mark Sears: Enter book values for Years 1-8 as formulas

31,000 Mark Sears: Enter book values for Years 1-8 as formulas

24,000 Mark Sears: Enter book values for Years 1-8 as formulas

17,000 Mark Sears: Enter book values for Years 1-8 as formulas

10,000 Mark Sears: Enter book values for Years 1-8 as formulas

3,000 Mark Sears: Enter book values for Years 1-8 as formulas

12.5% Mark Sears: Enter as a formula

25.0%

$ 59,000.00

$ 14,750.00 Mark Sears: Enter as a formula

44,250.00 Mark Sears: Enter book values for Years 1-8 as formulas

$ 44,250.00

$ 11,062.50 Mark Sears: Enter as a formula

33,187.50 Mark Sears: Enter book values for Years 1-8 as formulas

$ 33,187.50

$ 8,296.88 Mark Sears: Enter as a formula

Mark Sears: Enter book values for Years 1-8 as formulas

24,890.62 Mark Sears: Enter book values for Years 1-8 as formulas

$ 24,890.62

$ 6,222.66 Mark Sears: Enter as a formula

18,667.96 Mark Sears: Enter book values for Years 1-8 as formulas

$ 18,667.96

$ 4,666.99 Mark Sears: Enter as a formula

14,000.97 Mark Sears: Enter book values for Years 1-8 as formulas

$ 14,000.97

$ 3,500.24 Mark Sears: Enter as a formula

10,500.73 Mark Sears: Enter book values for Years 1-8 as formulas

$ 10,500.73

$ 2,625.18 Mark Sears: Enter as a formula

7,875.55 Mark Sears: Enter book values for Years 1-8 as formulas

$ 7,875.55

$ 1,968.89 Mark Sears: Enter as a formula

5,906.66 Mark Sears: Enter book values for Years 1-8 as formulas

36 Mark Sears: Enter as a formula

$ 56,000 Mark Sears: Enter as a formula

$ 56,000.00

2/9 Mark Sears: Enter as a fraction

$ 12,444.44 Mark Sears: Enter as a formula

46,555.56 Mark Sears: Enter book values for Years 1-8 as formulas

7/36 Mark Sears: Enter as a fraction

$ 10,888.89 Mark Sears: Enter as a formula

35,666.67 Mark Sears: Enter book values for Years 1-8 as formulas

1/6 Mark Sears: Enter as a fraction

$ 9,333.33 Mark Sears: Enter as a formula

26,333.34 Mark Sears: Enter book values for Years 1-8 as formulas

5/36 Mark Sears: Enter as a fraction

$ 7,777.78 Mark Sears: Enter as a formula

18,555.56 Mark Sears: Enter book values for Years 1-8 as formulas

1/9 Mark Sears: Enter as a fraction

$ 6,222.22 Mark Sears: Enter as a formula

12,333.34 Mark Sears: Enter book values for Years 1-8 as formulas

1/12 Mark Sears: Enter as a fraction

$ 4,666.67 Mark Sears: Enter as a formula

7,666.67 Mark Sears: Enter book values for Years 1-8 as formulas

1/18 Mark Sears: Enter as a fraction

$ 3,111.11 Mark Sears: Enter as a formula

4,555.56 Mark Sears: Enter book values for Years 1-8 as formulas

1/36 Mark Sears: Enter as a fraction

$ 1,555.56 Mark Sears: Enter as a formula

3,000.00 Mark Sears: Enter book values for Years 1-8 as formulas

E16-7A

10pts.
GENERAL JOURNAL

Date Account Debit Credit

8 Bad Debt Expense

1,745

15 Bad Debt Expense

1,300

Wrote off uncollectible account

2 Accounts Receivable/V. Lawrence 1,745

1,745

2

1,745

Accounts Receivable/V. Lawrence 1,745

May 15 Accounts Receivable/D. Utter 1,300
Uncollectible Accounts Recovered 1,300

Reinstated account receivable

15 Cash 1,300

Accounts Receivable/D. Utter 1,300

Collection on account

20-1
	May						1,745
		Accounts Receivable/V. Lawrence
	Wrote off uncollectible account
July						1,300
		Accounts Receivable/D. Utter
Sept.
	Uncollectible Accounts Recovered
	Reinstated account receivable
	Cash
	Collection on account
20-2

Sheet1

E16-7A

10 points

3 points

2 points

E18-2A 10 points

*requirement 1 3 points
*requirement 2 3 points

*requirement 3

10 points

*requirement 1 3 points
*requirement 2 3 points
*requirement 3 4 points

Week 1 Grading Rubric
Point Available	Points Earned
			10 points
P16-9A
		*requirement 1						3 points
		*requirement 2
		*requirement 3		2 points
*requirement 4
	4 points
E18-7A
Total Score