CMA Study Group

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

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

    Posted 28 days ago
    How did we calculate the "Depreciation expense  +20,000"?

    Thanks

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


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

    Posted 28 days ago
    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





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

    Posted 28 days ago
    Thank you so much Rebecca -
    Very helpful.

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