折舊和prepayment計算方法(URGENT!!!) 加１０份

(1) 折舊 - Straight line 即每月攤分既數一樣. 假如本月買入 asset 及開始 depreciate:

Dr Plant & machinery 13,500
Cr Bank 13,500

Dr Depreciation (P&L) 225
Cr Accumulated depreciation (B/S) 225

之後每月重覆第二條 entry 直至做夠 60 個月為止

(2) Prepayment - 假設本月預付一年既保險費

Dr Insurance expenses 833.37
Prepayment 9,166.63
Cr Bank 10,000

下個月就開始做下面呢條 entry 直至做夠 11 個月為止

Dr Insurance expenses 833.33
Cr Prepayment 833.33

Depreciation using straight line method, $13,500 divided by 5 years. Each year depreciation is $2,700. Prepaid insurance $10,000 for one year which means each month is $833.33 and the last month is $833.37 due to rounding difference. The accounting entries are as follow:

1. Dr. Depreciation - Machinery $2,700
Cr. Accumulated depreciation - Machinery $2,700

2. Dr. Insurance expenses $833.33
Cr. Prepaid insurance $833.33