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Chapter 4 Case Problem 1:KELLY'S BOUTIQUE
Kelly's Boutique owned the following fixed assets as of December 31, 2010:
Description
| Asset # | 101 | 102 | 103 |
| Asset | Building | Computer System | Phone System |
| Date acquired | 1/1/07 | 1/1/09 | 1/1/09 |
| Cost | $500,000 | $65,000 | $46,500 |
| Salvage value | $50,000 | $1,000 | $1,000 |
| Estimated useful life | 20years | 5years | 5years |
You are to create a fixed asset depreciation summary and individual depreciation worksheets for Kelly's Boutique using the straight-line depreciation method based on the information tabulated above. Be sure to pay close attention to the date of purchase for each asset so that your summary sheet is correct. The summary sheet need only include depreciation from 2007 through 2010. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label your worksheets as follows: Summary SL, Asset 101 SL, Asset 102 SL, and Asset 103 SL.
In the same workbook, create Kelly's Boutique's fixed asset depreciation summary and individual depreciation worksheets using the double declining balance method and based on the tabulated information. Again, pay close attention to the date of purchase for each asset so that your summary sheet is correct. Label your worksheets: Summary DDB, Asset 101 DDB, Asset 102 DDB, and Asset 103 DDB.
In the same workbook, next create Kelly's Boutique's fixed asset depreciation summary and individual depreciation worksheets using the sum-of-the-year's digits method and based on the tabulated information. Pay close attention to the date of purchase for each asset so that your summary sheet is correct. Label your worksheets: Summary SYD, Asset 101 SYD, Asset 102 SYD, and Asset 103 SYD.
In the same workbook, you should now create a chart of Asset 101's depreciation (over its 20-year estimated useful life) that compares the straight-line, double103104declining balance, and sum-of-the-year's digits methods of calculating depreciation. Label this worksheet: Chart. Choose any 2D line chart and chart layout that you like.
Save the workbook as ch4-03_student_name (replacing student_name with your name). Print all worksheets in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer.
