教学课件 实用会计英语.ppt

Accumulated depreciation Decreases in assets are recorded by credits. Decreases in owner’s equity are recorded by debits. Owner’s equity is decreased by debits to Depreciation Expense, Art Equipment, and Depreciation Expense, Office Equipment. Assets are decreased by credits to contra-asset accounts Accumulated Depreciation, Art Equipment, and Accumulated Depreciation, Office Equipment. Accumulated depreciation Depreciation Expense, Photocopy Equipment $33 Accumulated Depreciation, Photocopy Equipment $33 Depreciation Expense, Office Equipment $56 Accumulated Depreciation, Office Equipment $56 WE ARE SAILING RIGHT ALONG!! BONDS PAYABLE CHAPTER 17 Bonds 1,000 Bond Certificate Investor Firm Estimated useful life For example, a computer can be used for more than five years regardless to the out-of-dated. However, its estimated useful life may be only two years because the new type is put into use instead of the old one. Methods of Computing Depreciation Straight-line Method Production Method Accelerated Methods Straight-line Method Method 1 Straight-line Method Straight-line Method Under this method, an equal amount of depreciation expense is allocated to each period of the asset’s useful life. Straight-line method is also called average-years method. Straight-line Method f = ax + b ? x = (f – b)/a “x” stands for annual depreciation that we want to know. “f” refers to acquisition cost. “b” is salvage value. “a” is estimated useful life. In mathematics, the formula of a straight line is Straight-line Method Formula Annual Depreciation = Acquisition Cost – Salvage Value Years of Useful life Straight-line Method Now, let’s  look at an  example … Straight-line Method On March 7, the George Ross Advertising Agency purchased art equipment and office equipment for$2,000 and $5,300 respectively. Suppose that the George Ross Advertising Agency estima