ACE INTEL SYSTEMS, INC. Depreciation and Accumulated Depreciation at July 31, 2014 Adjusting Workpaper Format The depreciation sheet in this workbook already shows how depreciation has been recorded up to nov "WAS" part). These calculations were incorrect and it is your task to calculate the correct depreciation correcting the previously recorded error while at the same time calculating the depreciation for July. The next section is the "should have been" ("S/H/B"). This is where you compute what the depreciatic should have been through July 31, 2014. Once you have done that, you'll compute the difference beti what has already been recorded and what should have been recorded, and then make an adjusting jOL entry to record the correction. The cells where I expect you to make data entries on the spreadsheet are all marked with "XXXX". A couple of hints: all assets use the straight-line method and you should assume $0 salvage value. The Hummer H2 and the communications equipment both use the half-year convention. To compute the depreciation for these, you'll need to figure out how much depreciation should be allocated each of th years. You will then half that amount as this is the first year of depreciation for both assets (half-year convention). Finally, you'll allocate a portion of that. Remember that we are computing depreciation 31, 2014, and not December 31, 2014, therefore only a portion of the 2014 depreciation will be allocat this point. The YTD months and total months cells in the spreadsheet template are there for purposes allocating the portion of the depreciation that should be on the books as of July 31. The YTD cell will ha number of months of depreciation that should be on the books as of July 31, and the Total cell will hol number of months of depreciation that will be on the books in all of 2014. The building uses the mid-month convention. As such, the easiest way to determine the depreciation compute the monthly depreciation (the amount that should be depreciated each month over its 39 ye and allocate the appropriate number of months as of July 31, 2014. Remember that because AIS, Inc. i mid-month convention for the building, you'll only allocate a half of a month's depreciation the first month. The easiest way to do this using the spreadsheet is to end your value in cell G32 with .5. So, if building had been placed into service in June 2014 (it wasn't), you would put 1.5 in cell G32. One mon July and a half-month for June. Check figures: Total depreciation already recorded ("WAS"): $10,763.00 Total depreciation that should have been recorded as of July 31 ("S/H/B"): $17,242.02 Journal entry to 515-Depreciation Expense to correct is $6,479.02 debit. Remember to use cell references and formulas when completing this spreadsheet. Simply typing numt the depreciation cells will result in no credit. ACE INTEL SYSTEMS, INC. Depreciation and Accumulated Depreciation at July 31, 2014 Adjusting Workpaper Format Assumptions: 1. First catab is 10w thec'ont racd t a daxtos a Ivically the accountancy:il scrathize trecetilec zene leczer 16/4- b Lill con from the G'L totie oigirally recorded Tansaction. 2. Creerd het are: Hote : Tracti ce blox re t ail stolu seven IVC Uted. The difference baw the originally wan to S/H/ R eded harstall. 2. Araves the repa.desit/credi: ad ustmen ded to increase or decease accountances Irene T contesta ctharoitir teir 10.) Note: This worl d widely used to crer erecting is All justing antics unclly mallyedt.hehe general age, must well expat information about why an adjusting entry is teine mase. The Corrollerette business orarization weld yaically review, sperose, ard allow "correcting sustiti m enny' to be curre ec and posted. This lossleeviderare rolurile lu' po uvity extema utixsadece l ies art of their activacking an widey Account (Accumulated Depreciation) G/L Cast WAS G/L Date Acquired Policy Life Policy Convention locum. Deprec. Comment: Tarehlune Hirmer H2 Comunicacions Equipment OTDui dire $ 30 m ar. 1220/5.00 202.00.00 4/12/2014 2/22/2004 2/5/2017 SHY - HY 1,700.00 4,995.00 1.690.09 10,703,03 Feginning home for the Hurra for depreciation calculation should have seen $5 00 as per the purchase Senner istorice ocot a theimer H2 Yerel econdes in the B- VV conversion Cypreciate Per policy, cpreciate is P Gheraltet. Cost Date Accurred to Convention YTD Months! Total Months Accum. Doproc. Comment: 5/H/B Account (Accumulated Depreciation) Throug1.uy HH2 Currica.jonsCquipment 4/12/2014 2/22/2001 XXXX $ 5,505.30 123 075 303 m... $ 276 .00 XXXX X XXX Ties Calculator Dewaluuttallxunulou decisori rullaythrouly 2011 Deprecatori Tether with perypeliry. 30 VV berurus . I/B JUHU Ullu32, 2014 7. tcta number of morth that will be consi20:2 Difference Needed for Adjustment rmer H2 GruCquirent Tie Dui dire XXXX XXXX XXXX XXXX Ircere credit sccumulared depreciatis c a rnleddesi roceed to count and destier deprecatione Dabit Credit TO CORRECT XXXX 515 - Depreciatior Expens 181 - A rmer H2 1B2-7- c m 1R2-4/H ilding Cylipment Taproorry na..ated perito at maghi.y?", 2014) ACE INTEL SYSTEMS, INC. Depreciation and Accumulated Depreciation at July 31, 2014 Adjusting Workpaper Format The depreciation sheet in this workbook already shows how depreciation has been recorded up to nov "WAS" part). These calculations were incorrect and it is your task to calculate the correct depreciation correcting the previously recorded error while at the same time calculating the depreciation for July. The next section is the "should have been" ("S/H/B"). This is where you compute what the depreciatic should have been through July 31, 2014. Once you have done that, you'll compute the difference beti what has already been recorded and what should have been recorded, and then make an adjusting jOL entry to record the correction. The cells where I expect you to make data entries on the spreadsheet are all marked with "XXXX". A couple of hints: all assets use the straight-line method and you should assume $0 salvage value. The Hummer H2 and the communications equipment both use the half-year convention. To compute the depreciation for these, you'll need to figure out how much depreciation should be allocated each of th years. You will then half that amount as this is the first year of depreciation for both assets (half-year convention). Finally, you'll allocate a portion of that. Remember that we are computing depreciation 31, 2014, and not December 31, 2014, therefore only a portion of the 2014 depreciation will be allocat this point. The YTD months and total months cells in the spreadsheet template are there for purposes allocating the portion of the depreciation that should be on the books as of July 31. The YTD cell will ha number of months of depreciation that should be on the books as of July 31, and the Total cell will hol number of months of depreciation that will be on the books in all of 2014. The building uses the mid-month convention. As such, the easiest way to determine the depreciation compute the monthly depreciation (the amount that should be depreciated each month over its 39 ye and allocate the appropriate number of months as of July 31, 2014. Remember that because AIS, Inc. i mid-month convention for the building, you'll only allocate a half of a month's depreciation the first month. The easiest way to do this using the spreadsheet is to end your value in cell G32 with .5. So, if building had been placed into service in June 2014 (it wasn't), you would put 1.5 in cell G32. One mon July and a half-month for June. Check figures: Total depreciation already recorded ("WAS"): $10,763.00 Total depreciation that should have been recorded as of July 31 ("S/H/B"): $17,242.02 Journal entry to 515-Depreciation Expense to correct is $6,479.02 debit. Remember to use cell references and formulas when completing this spreadsheet. Simply typing numt the depreciation cells will result in no credit. ACE INTEL SYSTEMS, INC. Depreciation and Accumulated Depreciation at July 31, 2014 Adjusting Workpaper Format Assumptions: 1. First catab is 10w thec'ont racd t a daxtos a Ivically the accountancy:il scrathize trecetilec zene leczer 16/4- b Lill con from the G'L totie oigirally recorded Tansaction. 2. Creerd het are: Hote : Tracti ce blox re t ail stolu seven IVC Uted. The difference baw the originally wan to S/H/ R eded harstall. 2. Araves the repa.desit/credi: ad ustmen ded to increase or decease accountances Irene T contesta ctharoitir teir 10.) Note: This worl d widely used to crer erecting is All justing antics unclly mallyedt.hehe general age, must well expat information about why an adjusting entry is teine mase. The Corrollerette business orarization weld yaically review, sperose, ard allow "correcting sustiti m enny' to be curre ec and posted. This lossleeviderare rolurile lu' po uvity extema utixsadece l ies art of their activacking an widey Account (Accumulated Depreciation) G/L Cast WAS G/L Date Acquired Policy Life Policy Convention locum. Deprec. Comment: Tarehlune Hirmer H2 Comunicacions Equipment OTDui dire $ 30 m ar. 1220/5.00 202.00.00 4/12/2014 2/22/2004 2/5/2017 SHY - HY 1,700.00 4,995.00 1.690.09 10,703,03 Feginning home for the Hurra for depreciation calculation should have seen $5 00 as per the purchase Senner istorice ocot a theimer H2 Yerel econdes in the B- VV conversion Cypreciate Per policy, cpreciate is P Gheraltet. Cost Date Accurred to Convention YTD Months! Total Months Accum. Doproc. Comment: 5/H/B Account (Accumulated Depreciation) Throug1.uy HH2 Currica.jonsCquipment 4/12/2014 2/22/2001 XXXX $ 5,505.30 123 075 303 m... $ 276 .00 XXXX X XXX Ties Calculator Dewaluuttallxunulou decisori rullaythrouly 2011 Deprecatori Tether with perypeliry. 30 VV berurus . I/B JUHU Ullu32, 2014 7. tcta number of morth that will be consi20:2 Difference Needed for Adjustment rmer H2 GruCquirent Tie Dui dire XXXX XXXX XXXX XXXX Ircere credit sccumulared depreciatis c a rnleddesi roceed to count and destier deprecatione Dabit Credit TO CORRECT XXXX 515 - Depreciatior Expens 181 - A rmer H2 1B2-7- c m 1R2-4/H ilding Cylipment Taproorry na..ated perito at maghi.y?", 2014)