Accounting Storyboard Assignment
Storyboard Text
- Sarah and Billy
- Hi, My name is Sarah are you the Consultant?
- yep. so Sarah, what problem do you need my help with today?
- Well, me and my friend started this bakery business about one year ago. We needed to calculate the accounts of the business but we don't know what depreciation is?
- So we Called you to help us on how we are supposed to put that in there.
- Sarah and Billy
- Sarah and Billy
- That simple enough to teach you out here.
- But how do you Calculate the depreciation for your long-term assets?
- SarahandBilly
- Sarah and Billy
- Over time long-term assets depreciate in value. Therefore you need to calculate the depreciation of your long-term assets at the end of each fiscal period
- for example less say that your coffee machine was bought for $1230 and will be resell for $150 in 8 years.
- so if the original cost was $1230 and subtracted by the estimated salvage value which is 150 after 8 years. The depreciation would be $135 right?
- Using the Straight line depreciation method of (Original cost of asset – estimated salvage value) divided by the Estimated number of periods in the life of the asset
- Sarah and Billy
- Correct! that's the depreciation for each fiscal period.
- since there has been one fiscal period so far you would subtract the depreciation by the original cost of $1095
- yep, that's how you calculate the depreciation of long-term assets. you have any other things you need help with just give me a call.
- Bye!!!!!!!!!!!!!!!!!!!!!!!!!!!
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