Sesame Company

Truck acquisition price 80,000,000

Residual value 10,000,000
Estimated usage (Miles) 250,000 miles
Useful life (years) 8 years
Usage during the year
2018 50,000 miles
2019 20,000 miles

Depreciation Expense (Depreciable Cost atau Depreciable base)/usefu

a. Straight line method SLM Depreciation Expense = (acquisiton price - residual value/est. useful life

8,750,000 depreciation expense for every year

31-Dec-18 Dr. Depr Expense

Cr. Accumulated Depreciation
31-Dec-19 Dr. Depr Expense
Cr. Accumulated Depreciation

b. Units of activity Unit of Activity Depreciation Expense = (acquisiton price - residual value) *(u
(Depreciable Base/Total usage of asset) * Actua
31-Dec-18 Dr. Depr Expense
Cr. Accumulated Depreciation
31-Dec-19 Dr. Depr Expense
Cr. Accumulated Depreciation

c. Double Declining Method DDM Depreciation Expense = (remaining book value )*(rate DDM) ==> residu

Rate SLM 12.5%

Rate DDM 25% > (Rate SLM * 2)
 Acquisition Price 80,000,000
Year Rate DDM Depr. Expense Accumulated Depreciation Remaining book value
1 2018 25% 20,000,000 20,000,000 60,000,000
2 2019 25% 15,000,000 35,000,000 45,000,000
3 2020 25% 11,250,000 46,250,000 33,750,000
4 2021 25% 8,437,500 54,687,500 25,312,500
5 2022 25% 6,328,125 61,015,625 18,984,375
6 2023 25% 4,746,094 65,761,719 14,238,281
7 2024 25% 3,559,570 69,321,289 10,678,711
8 2025 25% 678,711 70,000,000 10,000,000
PLUG

31 Dec, 2018 Dr. Depr Expense 20,000,000

Cr. Accumulated Depreciation 20,000,000
31 Dec, 2019 Dr. Depr Expense 15,000,000
Cr. Accumulated Depreciation 15,000,000

b. Sesame Company
Balance Sheet, SLM Method
As of December 31, 2018

Assets
Delivery truck 80,000,000
Less: Accumulated Depreciation (8,750,000)
Delivery truck (net) 71,250,000
Cost atau Depreciable base)/useful life
rice - residual value/est. useful life)

8,750,000
8,750,000
8,750,000
8,750,000

cquisiton price - residual value) *(usage for the year/est. usage of asset in miles)
Base/Total usage of asset) * Actual usage 280
14,000,000 14,000,000
14,000,000
5,600,000 5,600,000
5,600,000

book value )*(rate DDM) ==> residual value is taken into account at the very end of year of use for this method
book value ending senilai residual value, depreciation expense periode tersebut disesuaikan
1 Rona Co.
Price of Old Truck 45,000,000 Book Value 35,000,000
Accum. Depreciation 10,000,000
Cash Additions 15,000,000
Fair Value of Old Truck 38,000,000 New Truck 53,000,000

Journals
Dr. New Truck 53,000,000 For this type of exchange, there are two things to calcu
Dr. Accumulated Depreciation 10,000,000 New truck price: money pa
Cr. Gain on Exchange 3,000,000 Gain/loss: comparison of o
Cr. Old Truck 45,000,000
Cr. Cash 15,000,000

2 Black Inc.
Price of Old Machinary 15,000,000 BV 12,000,000
Accum. Depreciation 3,000,000
Cash Additions 8,000,000
Fair Value of Old Machinary 10,000,000 FV New Machine 18,000,000

Jurnal
Dr. New Machine 18,000,000
Dr. Accumulated Depreciation 3,000,000 New machinary price: mon
Dr. Loss on Exchange 2,000,000 Gain/loss: comparison of o
Cr. Old Machine 15,000,000
Cr. Cash 8,000,000
e are two things to calculate: 1) price of new truck and 2) gain/loss from transactions
w truck price: money paid + fair value of old truck 53,000,000
n/loss: comparison of old truck Book value to new truck price 3,000,000

w machinary price: money paid + fair value of old truck 18,000,000

n/loss: comparison of old truck Book value to new truck price (2,000,000)
1. Journal entries for PT Poci in 2019
Land & Capitalized Expenditures
Purchase Price 2,500,000,000 Capitalized costs: Any costs directly attributable to bringing the asset to t
Commission fee 125,000,000 be capable of operating in the manner intended
Legal fee 50,000,000
Related tax 50,000,000
Removal of old building costs 30,000,000
Proceeds from salvage materials (10,000,000)
2,745,000,000

Date Description Dr. Cr.

1-Jan-18 Land acquisition Land 2,745,000,000
Cash 2,745,000,000
1-Jan-19 Building Construction Building 2,000,000,000
Cash 2,000,000,000
31-Mar-19 Machine purchase Machine 1,000,000,000
Cash 1,000,000,000
1-Jul-19 Vehicle purchase Vehicle 300,000,000
Cash 300,000,000

2. Depreciation Expense for 2019 and Entries for 31 Dec 2019

1 Land No depreciation / No entry (land is not depreciated)

2 Building 2,000,000,000
useful life 15 year
residual value 500,000,000
SLM (Depreciable Base)/Useful Life
depre/year 100,000,000

Depreciation Expense - Building 100,000,000

Accumulated Depreciation - Building 100,000,000
 3 Machine 1,000,000,000
capacity 1,600,000 Units for two machines
residual value -

Actual unit produce year 1 200,000 for both machines

depre expense 2019 125,000,000 (total actual units produced/total capacity*machines bv)

Depreciation Expense - Machine 125,000,000

Accumulated Depreciation - Machine 125,000,000

4 vehicle 300,000,000 (100jt x 3)

Useful life 5 year
residual value 90,000,000 (30jt x 3)
DDM 40%
Rate
depre year 1 120,000,000 40% 300,000,000
depre jul-dec 60,000,000

Depreciation Expense - Vehicle 60,000,000

Accumulated Depreciation - Vehicle 60,000,000

3. Revising useful life

>> No entry
Change of assumptions (umur manfaat, nilai sisa, metode depresiasi) --> prospective, doesn't change the previous (2019) accounting record

Depre Expense 2020 - building

Building 2,000,000,000
Accm. Depre (100,000,000)
Carrying amount 1,900,000,000
remaining useful life 24 years 14 remaining years + 10 additional y
residual value 500,000,000
Depre Expense 2020 - building 58,333,333 Record at the end of 2020 year period
4. Disposal of asset - Vehicle
Depre expense 1 jan - 1 jul 2020
Depreciation Expense - Vehicle 16,000,000
Accumulated Depreciation - Vehicle 16,000,000

Vehicle 100,000,000 (1 vehicle)

Accm. Depre (36,000,000)
Carrying amount 64,000,000 --> Loss on disposal

Acc. Depreciation - Vehicle 36,000,000

Loss on Asset Disposal 64,000,000
Vehicle 100,000,000

<CONTOH: Gua jual pada harga 60,000,000>

Cash 60,000,000
Acc. Depre - Vehicle 36,000,000
Loss on Sale of Vehicle 4,000,000
Vehicle 100,000,000
butable to bringing the asset to the location and condition necessary for it to
operating in the manner intended by management.

Carrying Amount -> Book Value

 (ONE MACHINE)
Machine 500,000,000 Actual Prod 100,000
Capacity 800,000
Residual Value -
(Depreciable Base/Total Capacity)*Actual Production
city*machines bv) Depreciation Exp 62,500,000 Depre Cost/unit 625

Depreciation Exp - Machine 125,000,000

Acc Depre - Machine 125,000,000

(ONE VEHICLE) <PARTIAL YEAR> 1-Jul-19

Vehicle 100,000,000 Year Book Value Rate DDM
Useful Life 5 1 2019 100,000,000 40%
Residual Value 30,000,000 CTH: 10,000,000 2 2020 80,000,000 40%
DDM Rate 40% 3 2021 48,000,000 40%
4 2022 28,800,000 40%
5 2023 17,280,000 40%
6 2024 10,368,000 40%

Depreciation Exp - Vehicle 60,000,000

Acc. Depre - Vehicle 60,000,000

previous (2019) accounting records

remaining years + 10 additional years due to revision of estimated use

6/12*BV Beginning of year x Rate 40%
BV of 1 Vehicle in 1 Jan 2020=100.000-20.000=80.000

<CONTOH: Gua jual pada harga 70,000,000>

Cash 70,000,000
Acc. Depre - Vehicle 36,000,000
Vehicle 100,000,000
Gain on Sale of Vehicle 6,000,000
<Partial Year> Depr. Expense Accumulated Depreciation
=6/12 20,000,000 20,000,000
32,000,000 52,000,000
19,200,000 71,200,000
11,520,000 82,720,000
6,912,000 89,632,000
PLUG 368,000 90,000,000