Portfolio of exercises 1:

Individual task

Time limit: 48 hours

Please answer all the questions below. Explain your calculations

General journal, Ledger accounts, Unadjusted trial balance, Balance sheet

Recording revenues and expenses

Submit your assignment in an Excel document

Formalities:

Excel Worksheet.

Font: Arial 12,5 pts.

Submission: Week 3)- Via Moodle (Turnitin). No later than Sunday 17 of October, 2021 23h59.

Weight: This task is a 30% of your total grade for this subject.

It assesses the following learning outcomes:

Outcome 1: Critically understand the different depreciation methods

Outcome 2: Knowing how to record the sale of used assets

Outcome 3: Critically understand the differences between depreciation and amortization processes

Exercise 1:

On 1s of January 2021, the company GET INSURED, Ltd. purchased a license for computer software to improve the management of the client portfolio.

The price of the license is $50,000 and its useful life 5 years

The same day, the company sells a vehicle of its fleet for $38,000. The company had purchased it on January 15, 2019 for $96,000. The car had an estimated

useful life of 5 years and an estimated salvage value of $6,000 at the date of the purchase

Prepare a complete amortization schedule for the license of the software using the straight line method (20 points)

Prepare a complete depreciation schedule of the vehicle using the straight line method (20 points)

Prepare a complete depreciation schedule of the vehicle using the double declining balance method (20 points)

Record the journal entries for the sale of the vehicle taking into account that the company used the straight line method for depreciation purposes (15

points)

Record the journal entries for the sale of the vehicle taking into account that the company used the double declining balance method for depreciation

purposes (15 points)

Explain the differences between the results of question 4 and 5. (10 points)