At December 31, 2020, Halifax Servicing?s balance sheet showed capital asset information as detailed in the schedule
Question:
At December 31, 2020, Halifax Servicing?s balance sheet showed capital asset information as detailed in the schedule below. Halifax calculates depreciation to the nearest whole month.
Required
Complete the schedule (round only your final answers).
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Cost Information Depreciation Depreciation Accum. Deprec. Expense for Accum. Deprec. Balance of Balance of Date of Depreclation 2021 Dec. 31, 2020 Dec. 31, 2021 Description Cost Residual Life Purchase Method 10 yг. Office Equip. March 27/17 Straight-line $ 52,000 $14,000 6 уг. June 4/17 Machinery Double- declining- balance 113,000 26,000 250,000 Nov. 13/20 Truck Units-of- production km? 'There have been no disposals or betterments since the date of purchase. ZActual kilometres driven were 2020, 14,000; 2021, 68,000.
Step by Step Answer:
Cost Information Depreciation Description Date of Purchase Depreciation Method Cost Residual Life Ba...View the full answer
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
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