Dame un ejemplo de

Instructions

Analyze the foregoing transactions using the following column headings. Insert the number

of each transaction in the Item space and insert the amounts in the appropriate columns. For

amounts entered in the Other Accounts column, also indicate the account title.

ITEM LAND BUILDINGS $|$ OTHER ACCOUNTS $|$

$|$ Machine $1||||$

$|$ Machine $2||||$

$|$ Machine $3||||$

$|$ Totals $$118,500$ $$528,000$

In recent years, Kannada Company purchased three machines. Because of heavy turn

over in the accounting department, a different accountant was in charge of selecting the depre

ciation method for each machine, and each selected a different method. Information concerning

the machines is summarized below.

$|$ $$105,000|$ $$5,000|10|$ STRAIGHT LINE

$|$ $$150,000|$ $$10,000|8|$ DECLINING BALANCE

$|$ $$100,000|$ $$15,000|6|$ UNITS OF ACTIVITY

For the declining$-$balance method, the company uses the double$-$declining rate. For the units$-$of

activity method, total machine hours are expected to be $25,000.$ Actual hours of use in the first $3$

years were: $2012,2,000$; $2013,4,500$; and $2014,5,500.$

$1-$ THIS RESULT IS WHAT YOU HAVE TO GIVE ALL THE CALCULATIONS?

Totals

Land $$118,500$

Buildings $$528,000$

HOW TO GET THE CALCULATION?

Compute depreciation under

different methods?

EN FORMA DE ACCOUNTING?