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1. Introduction to Accounting(0)

Welcome!
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Types of Accounting
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Business Organization
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Useful Information
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Fundamental Accounting Equation
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The Financial Statements
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Sample Financial Statements - Coca Cola
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2. Transaction Analysis(0)

Journal Entries: Debits and Credits
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Accounting Flow Intuition: BASE Formula
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Journal Entries: Business Formation Example
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Trial Balance
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Classified Balance Sheet Components
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3. Accrual Accounting Concepts(0)

Accrual Accounting vs. Cash Basis Accounting
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Revenue Recognition and Expense Recognition
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Introduction to Adjusting Journal Entries and Prepaid Expenses
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Adjusting Entries: Supplies
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Adjusting Entries: Unearned Revenue
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Adjusting Entries: Accrued Expenses
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Adjusting Entries: Accrued Revenues
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Adjusting Entries: Depreciation
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Summary of Adjusting Entries
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Unadjusted vs Adjusted Trial Balance
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Closing Entries
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Post-Closing Trial Balance
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4. Merchandising Operations(0)

Service Company vs. Merchandising Company
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Net Sales
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Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory
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Perpetual Inventory - Purchases
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Perpetual Inventory - Freight Costs
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Perpetual Inventory - Purchase Discounts
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Perpetual Inventory - Purchasing Summary
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Periodic Inventory - Purchases
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Periodic Inventory - Freight Costs
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Periodic Inventory - Purchase Discounts
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Periodic Inventory - Purchasing Summary
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Single-step Income Statement
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Multi-step Income Statement
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Comprehensive Income
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5. Inventory(0)

Merchandising Company vs. Manufacturing Company
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Physical Inventory Count, Ownership of Goods, and Consigned Goods
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Specific Identification
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Periodic Inventory - FIFO, LIFO, and Average Cost
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Perpetual Inventory - FIFO, LIFO, and Average Cost
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Financial Statement Effects of Inventory Costing Methods
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Lower of Cost or Market
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Inventory Errors
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6. Internal Controls and Reporting Cash(0)

Fraud and the Fraud Triangle
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Sarbanes-Oxley Act
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Five Components of Internal Controls
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Principles of Control Activities
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Limitations of Internal Controls
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Petty Cash
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Bank Reconciliation
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Journal Entries for Bank Reconciliation
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7. Receivables and Investments(0)

Types of Receivables
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Net Accounts Receivable: Direct Write-off Method
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Net Accounts Receivable: Allowance for Doubtful Accounts
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Net Accounts Receivable: Percentage of Sales Method
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Net Accounts Receivable: Aging of Receivables Method
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Notes Receivable
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Introduction to Investments in Securities
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Trading Securities
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Available-for-Sale (AFS) Securities
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Held-to-Maturity (HTM) Securities
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Equity Method
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8. Long Lived Assets(0)

Initial Cost of Long Lived Assets
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Basket (Lump-sum) Purchases
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Ordinary Repairs vs. Capital Improvements
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Depreciation: Straight Line
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Depreciation: Declining Balance
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Depreciation: Units-of-Activity
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Depreciation: Summary of Main Methods
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Depreciation for Partial Years
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Retirement of Plant Assets (No Proceeds)
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Sale of Plant Assets
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Change in Estimate: Depreciation
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Intangible Assets and Amortization
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Natural Resources and Depletion
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Asset Impairments
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Exchange for Similar Assets
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9. Current Liabilities(0)

Types of Liabilities
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Notes Payable
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Payroll and Payroll Taxes
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Sales Tax Payable
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Current Portion of Long Term Debt
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Contingent Liabilities
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Estimated Liabilities: Warranties
(0)

10. Time Value of Money(0)

Time Value of Money Equations
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Using Time Value of Money Tables
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11. Long Term Liabilities(0)

Introduction to Bonds and Bond Characteristics
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Face Value Bonds
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Discount on Bonds
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Premium on Bonds
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Zero Coupon Bonds
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Straight Line Amortization of Bond Premium or Discount
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Effective Interest Amortization of Bond Premium or Discount
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Redeeming Bonds before Maturity
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12. Stockholders' Equity(0)

Characteristics of a Corporation
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Shares Authorized, Issued, and Outstanding
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Issuing Par Value Stock
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Issuing No Par Value Stock
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Issuing Common Stock for Assets or Services
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Retained Earnings
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Retained Earnings: Prior Period Adjustments
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Preferred Stock
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Treasury Stock
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Dividends and Dividend Preferences
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Stock Dividends
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Stock Splits
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13. Statement of Cash Flows(0)

Introduction to the Statement of Cash Flows
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Operating Activities: Indirect Method
(0)

Operating Activities: Direct Method
(0)

Investing Activities
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Financing Activities
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Significant Noncash Activities
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14. Financial Statement Analysis(0)

Horizontal Analysis
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Vertical Analysis
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Common-sized Statements
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Trend Percentages
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Discontinued Operations and Extraordinary Items
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Introduction to Ratios
(0)

Ratios: Earnings Per Share (EPS)
(0)

Ratios: Working Capital and the Current Ratio
(0)

Ratios: Quick (Acid Test) Ratio
(0)

Ratios: Gross Profit Rate
(0)

Ratios: Profit Margin
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Ratios: Quality of Earnings Ratio
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Ratios: Inventory Turnover
(0)

Ratios: Average Days in Inventory
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Ratios: Accounts Receivable (AR) Turnover
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Ratios: Average Collection Period (Days Sales Outstanding)
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Ratios: Return on Assets (ROA)
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Ratios: Total Asset Turnover
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Ratios: Fixed Asset Turnover
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Ratios: Profit Margin x Asset Turnover = Return On Assets
(0)

Ratios: Accounts Payable Turnover
(0)

Ratios: Days Payable Outstanding (DPO)
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Ratios: Times Interest Earned (TIE)
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Ratios: Debt to Asset Ratio
(0)

Ratios: Debt to Equity Ratio
(0)

Ratios: Payout Ratio
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Ratios: Dividend Yield Ratio
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Ratios: Return on Equity (ROE)
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Ratios: DuPont Model for Return on Equity (ROE)
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Ratios: Free Cash Flow
(0)

Ratios: Price-Earnings Ratio (PE Ratio)
(0)

Ratios: Book Value per Share of Common Stock
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Ratios: Cash to Monthly Cash Expenses
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Ratios: Cash Return on Assets
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Ratios: Economic Return from Investing
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Ratios: Capital Acquisition Ratio
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15. GAAP vs IFRS(0)

GAAP vs. IFRS: Introduction
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GAAP vs. IFRS: Classified Balance Sheet
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GAAP vs. IFRS: Recording Differences
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GAAP vs. IFRS: Adjusting Entries
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GAAP vs. IFRS: Merchandising
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GAAP vs. IFRS: Inventory
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GAAP vs. IFRS: Fraud, Internal Controls, and Cash
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GAAP vs. IFRS: Receivables
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GAAP vs. IFRS: Long Lived Assets
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GAAP vs. IFRS: Liabilities
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GAAP vs. IFRS: Stockholders' Equity
(0)

GAAP vs. IFRS: Statement of Cash Flows
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GAAP vs. IFRS: Analysis and Income Statement Presentation
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8. Long Lived Assets

Depreciation for Partial Years

8. Long Lived Assets

Depreciation for Partial Years: Videos & Practice Problems

Video Lessons Practice Worksheet

Depreciation for Partial Years Practice Problems

24 problems

Problem 1Multiple Choice

What is partial-year depreciation?

Problem 2Multiple Choice

Why is partial-year depreciation necessary when an asset is purchased after January 1st?

Problem 3Multiple Choice

A company purchases equipment for \$24,000 on July 1. The equipment has a useful life of 4 years and a residual value of \$2,000. What is the depreciation expense for the first year using the straight-line method?

Problem 4Multiple Choice

A machine is purchased for \$50,000 with a residual value of \$5,000 and a useful life of 10 years. What is the annual depreciation expense using the straight-line method?

Problem 5Multiple Choice

Which formula is used to calculate annual depreciation expense under the straight-line method?

Problem 6Multiple Choice

If a company records \$1,200 in partial-year depreciation expense, what is the correct journal entry?

Problem 7Multiple Choice

Which accounts are affected when recording partial-year depreciation?

Problem 8Multiple Choice

A company buys a computer for \$8,000 on September 1. The annual straight-line depreciation is \$1,600. What is the net book value at December 31 of the same year?

Problem 9Multiple Choice

A business purchases machinery for \$60,000 on May 1. The machinery has a useful life of 6 years and a residual value of \$6,000. What is the net book value at December 31 of the purchase year using straight-line depreciation?

Problem 10Multiple Choice

What is a common mistake students make when calculating partial-year depreciation?

Problem 11Multiple Choice

A student calculates depreciation for a truck purchased on November 1 as if it was owned for the entire year. What is the impact of this error on the financial statements?

Problem 12Multiple Choice

How does the units of production method handle partial-year depreciation?

Problem 13Multiple Choice

A company buys a machine expected to produce 100,000 units over its life. The machine costs \$40,000 and has a residual value of \$4,000. If 8,000 units are produced in the first partial year, what is the depreciation expense for that year using units of production?

Problem 14Multiple Choice

Which statement best compares partial-year depreciation under straight-line and units of production methods?

Problem 15Multiple Choice

A company purchases two assets: Asset A (straight-line) and Asset B (units of production). Both are bought on July 1. How should the company calculate depreciation for each asset for the first year?

Problem 16Multiple Choice

A company purchases office furniture for \$12,000 on March 1. The furniture has a useful life of 8 years and a residual value of \$1,600. What is the depreciation expense for the first year using straight-line?

Problem 17Multiple Choice

A company fails to prorate depreciation for an asset purchased in September, recording a full year's expense. What is the effect on net income and asset value?

Problem 18Multiple Choice

A student calculates partial-year depreciation for a \$30,000 asset purchased on August 1, with a useful life of 5 years and \$5,000 residual value, as \$5,000 for the first year. Identify and correct the error.

Problem 19Multiple Choice

Given the following scenario: An asset is purchased on April 1 for \$18,000, with a useful life of 6 years and a residual value of \$3,000. A student calculates depreciation for the first year as \$2,500. Is this correct? If not, what is the correct amount?

Problem 20Multiple Choice

When calculating partial-year depreciation using the straight-line method, what must be done after determining annual depreciation?

Problem 21Multiple Choice

How is the net book value of an asset determined at the end of a partial year?

Problem 22Multiple Choice

A company purchases a vehicle for \$36,000 with a residual value of \$6,000 and a useful life of 6 years. What is the annual depreciation expense?

Problem 23Multiple Choice

A company purchases equipment for \$20,000 on October 1. The equipment has a useful life of 5 years and a residual value of \$2,000. What is the depreciation expense for the first year and the net book value at year-end?

Problem 24Multiple Choice

A company calculates \$2,400 in partial-year depreciation for a new asset. How should this be reflected in the journal entry and on the balance sheet?

Depreciation: Summary of Main Methods Practice Problems Retirement of Plant Assets (No Proceeds) Practice Problems

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