1. Let’s go over Depreciation before the test on

2. Depreciation The cost of the non current asset less how much we think we will sell it ÷ how long we will have it. Cost less Sale Value Useful life

3. Restoration Doors purchased a new photocopier $6000 to be sold for $300 in 4 year Cost less Sales value Useful life 6000 – 300 4 = $1425 Depreciation Expense per year

4. Reporting Depreciation Expense Restoration Doors Income Statement For the month ending 30 May 2012 Revenue Cash Sales9000 Less Expenses Wages1000 Other Expenses5000 Depreciation Expense14257425 Profit575

5. Accumulated Depreciation Every year that a business owns a Non Current Asset, the Depreciation Expense is added together (or Accumulated). This is to estimate how much the Non Current Asset has worn out over its useful life.

6. Reporting Accumulated Depreciation Restoration Doors Balance Sheet (extract) As at 30 th May 2012 Non Current Assets Photocopier6000 Less Accumulated Depreciation14254575

7. Reporting Accumulated Depreciation after 2 years Restoration Doors Balance Sheet (extract) As at 30 th May 2013 Non Current Assets Photocopier6000 Less Accumulated Depreciation28503150

8. Reporting Accumulated Depreciation after 3 years Restoration Doors Balance Sheet (extract) As at 30 th May 2014 Non Current Assets Photocopier6000 Less Accumulated Depreciation42751725

9. Calculating Accumulated Depreciation YearDepreciation Expense Accumulated Depreciation 11425 2 2850 314254275

10. Make sure you have completed All the Depreciation Exercises – Topline, CBD, P. Doyle Handed in the Dell Luggage Exercise (which is a photocopy and not on the computer). Completed your Depreciation Homework K. Harrison and handed it in. Have some notes to take home to study before you do the Depreciation Test.