Excel Depreciation Template - PDF by lph14115

VIEWS: 389 PAGES: 10

More Info
									                                          Accounting Lesson Plan
                                                        (Depreciation)

COURSE TITLE: ACCOUNTING                                                                          LESSON LENGTH: 255 minutes



TOPIC:   Write it Off!

OVERVIEW: Students will view and discuss a Power Point Presentation entitled “Depreciation, a brief overview”. Students
will then complete a series of activities using Excel including 1) Creating an Excel program to calculate straight line
depreciation, 2) Using Excel to create financial statements and 3) Using an Excel template (from Microsoft) to compare 3
types of depreciation and create charts to show comparisons.

ALABAMA CONTENT STANDARD(S):

Technology
Students will:
1. Use technologies needed to perform job functions in the field of accounting.
Examples: accounting software, computer numeric keypad, spreadsheets, income tax
software

Accounting Procedures
5. Analyze the accounting equation for the purpose of relating it to the accounting cycle.
Examples: journalizing and posting transactions, reporting financial statements

6. Interpret data from a variety of financial statements, including verifying data for business
reports and creating charts and graphs for accurate reporting.

7. Explain accounting functions of fixed assets and depreciation.

Generally Accepted Accounting Principles
13. Interpret generally accepted accounting principles (GAAP).
Examples: adequate disclosure, business entity
NATIONAL STANDARDS:

Information Technology

V. Application Software
Achievement Standard: Identify, evaluate, select, install, use, upgrade, and customize application software; diagnose and solve
problems resulting from an application software's installation and use

Accounting

II. The Accounting Process
Achievement Standard: Apply generally accepted accounting principles to determine the value of assets, liabilities, and owner's
equity.

III. Financial Statements
Achievement Standard: Prepare, interpret, and analyze financial statements using manual and computerized systems for service,
merchandising, and manufacturing businesses.

IV. Special Applications
Achievement Standard: Apply appropriate accounting principles to payroll, income taxation, managerial systems, and various forms of
ownership.

V. Interpretation and Use of Data
Achievement Standard: Use planning and control principles to evaluate the performance of an organization and apply differential
analysis and present-value concepts to make decisions.


LEARNING OBJECTIVES:

Students will create, save, and print spreadsheet files using Microsoft Excel
Students will chart and analyze Excel data
Students will create financial statements – Balance sheet and Income Statement

MATERIALS AND EQUIPMENT NEEDED:

Paper, Calculator, Pens/pencils


TECHNOLOGY RESOURCES NEEDED:
  Computer, Printer, Internet, Microsoft Office Excel




                                                  INTEGRATED                                                               TIME ON
                  CONTENT                           CONTENT        LEARNING ACTIVITIES                   RESOURCES          TASK
                                                     CODE



Technology                                        R, W, C, M, CL   Students will view and discuss        Internet          30 minutes
Students will:                                                     PowerPoint presentation on
1. Use technologies needed to perform job                                                                Microsoft Excel
                                                                   depreciation methods.
functions in the field of accounting.             PS, CT                                                                   45 minutes
Examples: accounting software, computer
                                                                   Students will create Excel file
numeric keypad, spreadsheets, income tax
software                                                           calculating straight line
                                                                   depreciation
Accounting Procedures                                              Students will create financial                          90 minutes
Students will:
5. Analyze the accounting equation for the                         statements using Excel
purpose of relating it to the accounting cycle.                    spreadsheets.
Examples: journalizing and posting
transactions, reporting financial statements                       Students will utilize Microsoft                         45 minutes
                                                                   Office depreciation comparison file
6. Interpret data from a variety of financial                      to explore different depreciation
statements, including verifying data for                           methods.
business
reports and creating charts and graphs for
accurate reporting.                                                Students will chart and analyze                         45 minutes
                                                                   comparisons between different
7. Explain accounting functions of fixed                           methods.
assets and depreciation.

Generally Accepted Accounting
Principles
13. Interpret generally accepted accounting
principles (GAAP).
Examples: adequate disclosure, business
entity




VARIED ASSESSMENT STRATEGIES:

A rubric is provided for students prior to learning activity.


PROVISIONS FOR INDIVIDUAL DIFFERENCES:

There may be some individuals that have math deficiencies who may need help. Direct instruction will be provided to review/explain the
depreciation concepts. In addition, instructor will be available at all times to assist students who have not yet mastered Excel skills.


                                             INTEGRATED CONTENT CODES

BASIC SKILLS
R=READING SKILLS
W=WRITING SKILLS
C=COMMUNICATION SKILLS
SS=SOCIAL STUDIES
M=MATH
S=SCIENCE
IR-INTERPERSONAL RELATIONSHIP SKILLS
CL=COMPUTER LITERACY SKILLS


PROCESS SKILLS

DM=DECISION MAKING SKILLS
PS=PROBLEM SOLVING SKILLS
CT=CRITICAL THINKING SKILLS
EMPLOYABILITY

ES=EMPLOABILITY SKILLS
MS=MANAGEMENT SKILLS
WA=WORK ATTITUDES
TW=TEAMWORK

LEADERSHIP SKILLS

IM=INTEGRATION OF LEADERSHIP
CTSO=CAREER/TECHNICAL STUDENT ORGANIZATION
LD=LEADERSHIP DEVELOPMENT SKILLS
                           THE MORE INTEGRATION THE BETTER
                                            Write It Off!
Activity #1
Use Excel to Create a Worksheet to Calculate Straight-Line Depreciation

  1. Determine the cost of the asset acquisition. This is the purchase price of the asset.

  2. Ascertain the useful life of the asset. Please consult with the generally accepted accounting principles (GAAP)
     to determine the asset's useful life.

  3. Establish the salvage value of the asset. Again, consult with the generally accepted accounting principles for
     guideline to determine the salvage value of an asset.

  4. Open the Microsoft Excel spreadsheet program.

  5. Enter the value obtained from Steps One, Two, and Three. Type each value into its own column and label
     each column appropriately.

  6. Select the function utility from the individual cell display menu. Make sure the cell where the straight-line
     depreciation figure resides is chosen.

  7. Choose the "IF" function from the list of available functions. Be sure that the display option is set to "All" or
     "Logical". Alternatively, a user can simply type "If" into the function search option.

  8. Enter the cell numbers for the values that were previously entered. Assume the following is true and these cell
     numbers are where the depreciation values were entered: I6 = acquisition cost, J6 = useful life, K6 = salvage
     value. In the Logical_test box enter the following, "AND(I6<>0,K6<>0,J6<>0)." In the "Value_if_true" box enter
     the following, "SLN(I6,K6,J6)." And finally in the "Value_if_false" box enter double quotations or "".

  9.   Click "OK" and the straight-line depreciation figure will appear in the designated cell. Choose "Save" when the
     work in Excel is complete.

     Activity Source: http://www.ehow.com/how_2098557_calculate-straight-line-depreciation-using.html


Activity #2
Use Excel to perform the following tasks:
Late Bloomers Landscaping trial balance is shown below. During the month of March Late Bloomers acquired the
following items:

                Tractor costing $24,000 with an expected life of 10 years a salvage value of $3,000

                 Triple-axle trailer at $5,000 with an expected life of 10 years and no salvage value



                                  Late Bloomers Landscaping
                                             Work Sheet
                                    For Month Ended March 31, 2009
                                Trial Balance         Adjustments     Income Statement    Balance Sheet
        Account Title         Debit       Credit     Debit   Credit    Debit    Credit   Debit    Credit
  Cash                        1,421.00
  Accounts Receivable         1,050.00
  Supplies                    1,450.00
  Prepaid Rent                1,500.00
  Landscaping Equipment      12,000.00
  Accounts Payable                        2,000.00
  John Doe, Capital                      13,450.00
  John Doe, Drawing           1,000.00
  Sales                                   3,725.00
  Salary Expense                550.00
  Miscellaneous Expense         204.00
                             19,175.00 19,175.00

  1. Create a worksheet similar in format to the one above and using the numbers given above. Choose a theme
     and heading styles. Enhance worksheet appearance as you feel appropriate.
  2. Post adjustments for the purchases of tractor and trailer.
  3. Late Bloomers has opted to use straight-line depreciation. Calculate the yearly depreciation for the new
     equipment items; then figure the depreciation for 1 month.
  4. Journalize depreciation expense for 1 month. (Hint: yearly amount/12)
  5. Post closing entries.
  6. Create monthly financials.

Activity #3
Use Excel and the internet to perform the following tasks:
Go to the following website and download the Depreciation Comparison Worksheet Template shown below:

http://office.microsoft.com/en-us/templates/TC100356351033.aspx

Using the template, perform the following tasks:

  1) Enter various amounts and salvage values in the template (at least 5 different amounts) and observe the
     differences. Record your thoughts and observations. Why do you think the template offers the number of years
     that it does?

  2) Use the template to calculate depreciation for Late Bloomers’ tractor purchase. Compare the three methods.
     Print the spreadsheet.

  3) Create a 3-D Column chart from the template data comparing the 3 methods. Add a title to the chart. Enhance
     the chart’s appearance with borders and fonts. Print the chart.
             Grading Rubric
              Points Possible   Points Earned
Activity 1    25
Activity 2    25
Activity 3    25
Total         75

								
To top