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  • 1.  Re Part 1 Section 1 - Q 33. CSO: 1A1d LOS: 1A1e

    Posted 05-08-2020 09:57 AM
    How did we calculate the "Depreciation expense  +20,000"? 

    Thanks

    ------------------------------
    Mourad Messiha
    Director/Manager
    Markham ON
    Canada
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  • 2.  RE: Re Part 1 Section 1 - Q 33. CSO: 1A1d LOS: 1A1e

    Posted 05-08-2020 10:48 AM
    Hi Mourad,

    Equipment Accum Dep
    Beg Bal     360,000.00    70,000.00 Beg Bal
     60,000.00  to remove equip sold     7,000.00  
        100,000.00      
        400,000.00    63,000.00
       
       ??? 
     83,000.00 Balance per Balance Sheet
    The Accumulated depreciation is $83,000 instead of $63,000 so $20,000 was added.
    This means that $20,000 was expensed.
    Depreciation Expense Accum Dep
       70,000.00 Beg Bal
         7,000.00  
         
       63,000.00
       
          20,000.00        20,000.00
       83,000.00 Balance per Balance Sheet

    I like using T-Tables to see things clearly, although during the test this method may be time consuming.  But, I haven't tested yet; with practice it may easier to solve without doing all this.  

    Rebecca



    Original Message


  • 3.  RE: Re Part 1 Section 1 - Q 33. CSO: 1A1d LOS: 1A1e

    Posted 05-08-2020 02:44 PM
    Thank you so much Rebecca - 
    Very helpful.

    ------------------------------
    Mourad Messiha
    Director/Manager
    Markham ON
    Canada
    ------------------------------

    Original Message