Deprecation of Assets:

Straight line method:

On 1/12/ 2011, a company purchased a machine costing $1,750. It is expected to have 5 years estimated useful life and value of $250 at the end of the 5th year.

Prepare the deprecation schedule for the life of the asset.

Record the depreciation journal entries at the end of financial year for year 1 only.

Double -Declining balance method

A business purchased cleaning equipment in 2008 for $8,500 and is depreciated by the double declining method for an expected life of 12 years. Original salvage value was estimated to be $2,500 at the end of 12 years.

Prepare the deprecation schedule for the life of the asset.

What is the book value of the cleaning equipment at the end of 2014?

Sum of the Digits method

A machine costing $5,000 was purchased on 01/07/2011. The expected resale value at the end of its five-year useful life is $1,000.

Prepare the depreciation schedule for the life of the asset.

Record the depreciation journal entries at the end of financial year 30/06/2012.