Excel Depreciation Formula Straight Line - Excel

							Instructions for the Microsoft Excel Templates

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Place the proper account title in the cell where the word "Account title" appears on the template.

Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed
in some of these cells.

Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be
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Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.

Insert the account number where "Acct Nbr" appears on the template during posting.

Insert the journal reference where "JOURN #" appears on the template during posting.

Insert the title in the cell where "TITLE" appears on the template.

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Negative values may be shown as ($400) or -$400.




                                   Instructions, Page 1 of 3, 2/2/2011, 6:11 PM
Consider using "Split" panes to assist in copy and paste of data.

Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell
A34 contains the data to be entered. This precludes typing and data entry errors.




                                   Instructions, Page 2 of 3, 2/2/2011, 6:11 PM
Name:
Exercise:         E11-4, Depreciation Computations - Five methods
Course:
Date:
Wenner Furnace Corp. purchased machinery for                    $279,000 on May 1, 2010. It is estimated
that it will have a useful life of      10          years, scrap value of    $15,000     production of
    240,000          units, and working hours of    25,000     During 2011 Wenner Corp. uses the
machinery for           2,650         hours, and the machinery produces       25,500     units.

Instructions:
From the information given, compute the depreciation charge for 2011 under each of the following
methods, (round to three decimal places):
(a) Straight-line (Note - Utilize Excel formula =SLN(Cost,Salvage,Life) to solve the problem.)
                                                     Formula

(b) Units-of-output (Note: Since units-of-production has an "s" in it, utilize salvage value in computing
   period depreciation.)
                                          Cost:      Amount
                                Salvage value:       Amount
                            Depreciable value:       Formula
                           Life units expected:      Number
                         Depreciation per unit:      Formula
                                  Period units:      Number
                          Period depreciation:       Formula

(c) Working hours (Note: Working hours is a "units-of-production" method and since units-of-production
    has an "s" in it, utilize salvage value in computing period depreciation.)
                                             Cost:      Amount
                                   Salvage value:       Amount
                               Depreciable value:      Formula
                            Hours of expected life:     Number
                            Depreciation per hour:     Formula
                                     Period hours:      Number
                              Period depreciation:     Formula

(d) Sum-of-years-digits (Note - Utilize Excel formula =SYD(Cost,Salvage,Life,Period) to solve the
   problem.) (Note: Second year covers two depreciation periods.)
       First part of 2011              Formula      * (10/55) * (1/3) =        Formula
     Second part of 2011               Formula       * (9/55) * (2/3) =        Formula
                                                                               Formula

(e) Declining balance, (10 year life, DDB results in 20% annual rate, use 200% for Factor in Excel).
    (Note: Utilize Excel formula =DDB(Cost,Salvage,Life,Period,Factor) to solve the problem.
    (Note: Second year covers two depreciation periods.)
       First part of 2011              Formula        * 20% * (1/3) =            Formula
      Second part of 2011              Formula        * 20% * (2/3) =            Formula
                                                                                 Formula




                                  Exercise 11-4, Page 3 of 3, 2/2/2011, 6:11 PM