How to Account for Depreciation (Tutorial Video) - Episode 7.2
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- Опубліковано 5 сер 2024
- #DEPRECIATION #DEPRECIATIONMETHODS #THECPARECIPE
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Outline:
In this second chapter of the second episode for the mini-series focusing on adjusting entries, we discuss:
1. What is depreciation (aside from the aspect of physical wear and tear)?
2. Why do we need to depreciate?
3. What is a capital expenditure?
4. What is capitalization?
5. Why do we have different depreciation methods?
6. What are the factors in computing depreciation?
7. What is estimated useful life?
8. What is salvage value/ residual value?
9. What is depreciable amount?
10. What is the accumulated depreciation account?
11. What is carrying value/ carrying amount/ book value?
12. What is the straight-line method?
13. What is the units-of-production method?
14. What is the Sum of the Years Digits (SYD) method?
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OVERVIEW:
Depreciation is often referred to as the physical wear and tear of items of fixed assets, or as they are referred to by PAS 16, Property, Plant & Equipment. However, Depreciation is also an accounting method of allocating costs that are expected to benefit more than one accounting period and that are material (materiality) enough to impact ones decision making (Capital Expenditures). These capital expenditures are allocated to each of the accounting periods in which they are expected to provide benefits to the entity and thus, be properly matched with the revenues it helps to generate (matching principle). In this case, Depreciation is in fact, a Deferral as discussed in Chapter 6.
PAS16 (patterned after IAS16) also states that an entity should recognize depreciation expense that reflects the pattern of the consumption of its benefits, hence why we have different methods of depreciation.
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Links to Other Episodes:
Episode 1: What is Accounting?
• What is Accounting? Fr...
Episode 2: Mastering the Rules of Debits and Credits
• Debits & Credits and P...
Episode 3: Sole Proprietorship, Partnership, Corporation & Limited Liability Company (LLC)
• Sole Proprietorship, P...
Episode 4: Interactive Journal Entry Exercises - Answer Along!
• Journal Entry Preparat...
Episode 5: Posting and Making Trial Balance Tutorial Video
• How to Post to General...
Episode 6: Adjusting Entries (Accruals and Deferrals)
• Adjusting Entries: Wha...
Feel free to comment on what you think about the lesson. Enjoy!
Episode 7.1: Bad Debts, Uncollectible Accounts, Doubtful Accounts (Accounting Tutorial Video)
• How to Account for Bad...
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new subscriber ako.more video po
request po, about taxation namn po
Clear and simple explanation. Thank you sir for sharing. Godbless you 💞
Salamat sa pagsuporta! Try the problem at the end of the video ❤️
@@TheCPARecipe okay sir. Thank you!
Thanks Sir for all the videos...it was a BIG HELP for the advance studies.. GBY.😊
Thank you din! I hope you tell your friends and classmates about this channel.
Yay first video of the month💕 Keep sharing prof🤞🏻
Salamat po sa pagsuporta! Try to answer the problem at the end of the video. 😉
Nice video bro!
Salamat bro. 😊
@@TheCPARecipe I sent a message sa fb account mo bro 😊
More power sir!💛💛
Thank you Camille! Did you like this episode?
Sir pacheck haha
1.) 83 333.33
2.) 800,000.04
3.) 4,415 000.00
Tama po ba hahaha
Try again dude pare tsong. Remember ang tanong ay:
1. Depreciation expense under SYD;
2. Accumulated depreciation balance using straight-line; and
3. Carrying amount based on miles driven.
@@TheCPARecipe
Sir eto po haha sana tama na
2.) 5M-1M= 4M/5 years= 1.8M x 2 years kase year 2016 and 2017= 1,600,000.00
1.) 5M-1M (residual value)= 4M x 3/15= 800,000
3.) 5M-1M= 4M/100K (useful life in miles) = 40K x 15 ( actual miles driven year 2018) = 600K
5M-2M( residual value for 2 years) = 3M
Therefore 3M- 600 K= 2,400,000.00 hooooo sana tama solution hahaha
Sorry po wala sa ayos haha
Ayan dude pare tsong. Petmalu! haha. Good job. Pwede ka ng magboard exam! Haha joke.
@@TheCPARecipe thankyouuu sirr hahahahaha malayo pa ako dun pero claim ko na
Yayyy
Salamat po sa pagsuporta! Try to answer the problem at the end of the video. 😉
San po makakabili ng Super Coffee maker and Super deluxe massage chair?? 😂😂
Anyway, thank you sa vid. Galing galing palagi 👏👏
1. Depreciation Expense for 2018 is 800,000
2. Accumulated Depreciation bal. at the end of Dec 31,2017 is 1,600,000
3.Carrying amount of the asset as of Dec 31,2018 is 2,400,000
Naks. Perfect score. Very good job. ❤️👍🏼
Hahaha para magising ang feelings mo at mawala ang sakit other than body pain? 😥😥