Introduction
Monthly Depreciation
Grade Level: 12
Objectives:
1. Learn what depreciation is
2. Learn how to calculate straight line depreciation
3. Learn how to record depreciation at month's end
Brief description of activities: Calculation of the depreciation then the student must properly report it
Today, you will be discovering what depreciation is, how to calculate it, and how to record it at month's end.
image from: https://thedailycpa.com/2017/10/23/types-of-depreciation/
Task
You must show your knowledge of straight line depreciation by calculating the monthly depreciation of a machine that costs $100,000 and has a useful life of 10 years. After calculating this, you must show the journal entry used at month end to report it.
Process
- Divide 100,000 by 10 to get $10,000 of depreciation per year
- Divide 10,000 by 12 to get the $833.33 of monthly depreciation
- Date your journal entry with the last date of the specified month
- Debit the "Depreciation Expense" account for 1200
- Credit the "Equipment" account for 1200
- https://bench.co/blog/accounting/straight-line-depreciation, https://corporatefinanceinstitute.com/resources/knowledge/accounting/straight-line-depreciation , https://www.freshbooks.com/hub/accounting/straight-line-depreciation , https://www.accountingtools.com/articles/2017/5/15/straight-line-depreciation
image from: https://www.bst-detectable.com/bst-desktop-calculator.html
Evaluation
| Calculated Depreciation | Point Value | Proper Journal Entry | Point Value |
| Correct answer and work shown | 2 | Correct Accounts and correct debit and credit | 2 |
| Work is not shown or answer is not correct | 1 | Accounts or credits and debits are incorrect | 1 |
| Did not complete | 0 | Not Complete | 0 |
| TOTAL | TOTAL | ||
| ASSIGNMENT TOTAL |
Conclusion
You should now be familiar with what straight line depreciation is and how it is used. You should have the skills to calculate and report monthly straight line depreciation for a piece of equipment acquired by a company.
Teacher Page
You may have a computer (excel sheet) and a calculator to complete this task
image from: https://www.itsolutions-inc.com/news-and-training/article/how-to-group-…