3 Months ended December 31 2013 Office equipment $ 8,000 Accumulated depreciatio
ID: 2494243 • Letter: 3
Question
3 Months ended December 31 2013
Office equipment $ 8,000 Accumulated depreciation—Office equipment 400 Computer equipment 20,000 Accumulated depreciation—Computer equipment 1,250 Total revenue 31,284 Total assets 93,248
3 months ended March 31 2013
Office equipment $ 8,000 Accumulated depreciation—Office equipment 800 Computer equipment 20,000 Accumulated depreciation—Computer equipment 2,500 Total revenue 43,853 Total assets 129,909
1) Assume that Success Systems does not acquire additional office equipment or computer equipment in 2014. Compute amounts for the year ended December 31, 2014, for Depreciation Expense—Office Equipment and for Depreciation Expense—Computer Equipment (assume use of the straight-line method).
2) Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2014?
3)Compute the three-month total asset turnover for Success Systems as of March 31, 2014. (Round your answer to 2 decimal places.)
Explanation / Answer
Assume that Success Systems does not acquire additional office equipment or computer equipment in 2014. Compute amounts for the year ended December 31, 2014, for Depreciation Expense—Office Equipment and for Depreciation Expense—Computer Equipment (assume use of the straight-line method).
Depreciation expense
Office equipment $1,600 ( 400 * 4)
Computer equipment $5,000 ( 1250 * 4)
2.
Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2014?
Office Equipment $6,000 ( 8,000 - 400, 1600)
Computer Equipment $13,750 ( 20,000 - 1250 - 5,000)
3.
Compute the three-month total asset turnover for Success Systems as of March 31, 2014. (Round your answer to 2 decimal places.)
Total asset turnover 0.39 times
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