MBA 5850 Case #2

Submit one Excel file; place each problem on its own worksheet.

#1: Prepare a depreciation schedule:

Z Company's fiscal year runs July 1st to June 30th. The company purchased a new machine which was installed and operational at the beginning of the second quarter in October. Machine purchase price of $145,800 with an additional installation cost of $10,000, and has an estimated useful life of four years from installation and estimated salvage value of $5,600.

Required:

1. Prepare a depreciation schedule showing Net Book value (beginning and ending), depreciation expense, and accumulated depreciation for the asset.

Hint: pay attention to dates of acquisition and fiscal year.

Prepare one schedule for each method: a. Straight-lineb. Double-declining balance

Excel Format

Beginning inventory Purchases: Sales #1 #2 #3 E F Units Unit cost 1,000 $4.00 1,200 $5.00 1,600 $6.00 800 $8.00 3,200 units sold G Total cost $4,000 $6,000 $9,600 $6,400