Financial Accounting-Depreciation Calculation & Fixed Assets

 

Depreciation calculation, straight line method, double declining method, units of production method and disposal assets.

What you'll learn:

1) Accounting for property plant and Equipment and Journalizing a lump sum purchase of fixed assets.

2) Double declining method of calculating depreciation. and Calculating deprecation for a part of a mouth or year.

3) Accounting for a change in accounting estimate related to depreciable assets and  Key accounting terms related to plant assets.

4) Recording the purchase of plant assets and Straight line method of calculating depreciation.

5) Units of production method of calculating depreciation. and Recording capital expenditures and revenue expenditures.

6) Recording the disposal of property plant and equipment and The accounting cycle.

Requirements:

We should have a basic understanding of financial accounting and debits and credits.

Description

Property plant and equipment, also known as plant assets, fixed assets, or depreciable assets is what we will cover.

We will discuss what property plant and equipment is and how to record property plant and equipment.

Multiple depreciation methods will be covered including the straight-line depreciation method, the double declining depreciation method, and the units of production depreciation method. We will discuss the pros and cons of each depreciation method and outline a format for structuring any deprecation problem.

While calculation depreciation expense we will also calculate accumulated depreciation and book value. It’s important to remember the context we are in when calculating depreciation, the reason for the work. Test questions often do not ask for the calculation of depreciation but for accumulated depreciation or the book value because these components take a little more time and understanding and to work out.

The straight-line method of depreciation is the easiest method to calculate and the method all other methods are derived from.

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