Homework: Portfolio of Exercises
General journal, Ledger accounts, Unadjusted trial balance, Balance sheet
Via Moodle. 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
Task:
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.
• Prepare a complete depreciation schedule of the vehicle using the straight line method.
• Prepare a complete depreciation schedule of the vehicle using the double declining balance method.
• Record the journal entries for the sale of the vehicle taking into account that the company used the straight line method for depreciation purposes.
• 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.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.