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Accounting Storyboard Assignment

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Accounting Storyboard Assignment
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  • 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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