(20分)BAFS error 高手請進plz!!!

Q.1.
The transactions:
Dr. Accumulated Deprec. - Machine 15,000
Cr. P/L - Depreciation 15,000

This is a reversing entry to correct an error.

What and where is the error ? See this.
- The machine was fully depreciated at 31 December 2012
- The machine was sold on 31 December 2013

- Depreciation was provided at 15% on the cost of the equipment for 2013

- was provided: means depreciation was already recorded/posted onto
the books for year 2013 while there was no need (this is where the
actual error lies).

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Q.2.
The Office Equipment was purchased on 1 July 2007.
Depreciation was charged in the year of purchase, while no depreciation
was charged in the year of disposal.

- In this case, for Year 2007, Depreciation should be pro-rated for 6 months
only. i.e. July 1, 2007 to Dec 31, 2007.

- Matching principle
A systematic and rational allocation method is used.
Depreciation expense is allocated among the periods in which the
equipment generates revenue.

- The same logic goes for disposal of assets.

************************************************************

WK






2014-02-02 03:07:58 補充：
Q.2.
Any information given on:
- Date of disposal
- Estimated useful life
- Depreciation method
- Depreciation rate

2014-02-03 04:43:13 補充：
Re:
- the above Journal Entries
- the calculation of the depreciation expense 7,200
- the profit on disposal 1,400
- the supposedly depreciation overcharged amount 2,400

Are these amounts given to you or you actually work them out?

2014-02-05 03:52:40 補充：
Basing on the data provided:
- Depreciation overcharged should show as: 1,200 (half a year), not 2,400 (one year)
overcharged period: Jan 1, 2007 to June 30, 2007

- Date/month of disposal: unknown
no depreciation was charged in the year of disposal (given): assume acceptable

2014-02-05 04:02:55 補充：
- up to the month of disposal, total deprec. charged should have been: 6,000
(for 2 1/2 years), not 7,200 (3 years)

- the correct Net Book Value at the time of disposal should show: 6,000
(not 4,800)

- the correct Gain on Disposal should have been: 200 (not 1,400)

2014-02-05 04:06:41 補充：
Do you remember the given Journal Entries:

Dr acc. Deprec. O.E. 2,400
Cr P/L - Deprec. 2,400

The naration is depreciation overcharged.

***** We let this STAND.

We are going to put through some Journal Entries to adjust the Book
to show the correct amounts:

2014-02-05 04:16:07 補充：
Dr P/L - Deprec Expense 1,200
Cr Accum Deprec - Equip 1,200

To put through again half a year Deprec Expense
(Original JE given shows OVERCHARGED as 2,400)

2014-02-05 04:18:07 補充：
Dr O.E. Disposal 1,200
Cr Accum Deprec - Equip 1,200

Accum Deprec close to O.E. Disposal

2014-02-05 04:20:17 補充：
Dr P/L - Gain on Disposal 1,400
Cr O.E. Disposal 1,400

Reverse the original amount Gain on Disposal

2014-02-05 04:21:39 補充：
Dr O.E. Disposal 200
Cr P/L - Gain on Disposal 200

Record the correct amount of Gain on Disposal

2014-02-05 04:35:04 補充：
We usually record the credit sales of Fixed Assets as:

Dr A/R (or A/R - Others)
Cr O.E. Disposal

Recording credit sale of office equipment in the sales day book is
not quite usual in the real world. We don't want to mix this up
with the trading goods transactions.
(I hope you don't mind.)

2014-02-06 02:31:38 補充：
The available information show:

- The JE to reverse depreciation overcharged: exist

- The apparent Journal Entries to record depreciation expense
for Year 2010 : does NOT EXIST

- The reverse JE does not make sense

2014-02-06 02:56:00 補充：
The narration said:
- Deprec. overcharged on office equipment that was sold during the year.

- It means: (1) Office equipment was sold during the year.
(2) Deprec. was overcharged

- It does not refer to any specific year deprec was being overcharged.

2014-02-06 03:18:54 補充：
Data show:

- Deprec. was being overcharged for 6 months (1,200)
from Jan 1, 2007 to June 30, 2007

- Question like this expects students to discuss on Accounting Principle,
Depreciation Method and allocation policies applied. (refer to the ans.)
Accuracies on computation is secondary.