Chapter 8 - Straight Line Depreciation Method example

The video tutorial explains the straight line method of depreciation, focusing on calculating total asset cost, creating journal entries, and understanding the impact on balance sheets. It covers the calculation of depreciation per year, the concept of depreciable base, and how to record depreciation in accounting books. The tutorial also addresses common questions and provides a practical example using a copy machine purchase.

What is the straight line method of depreciation?

How much did Papa Company pay for the copy machine after the discount?

What is the total asset cost for the copy machine?

Explain how to calculate the depreciation per year using the straight line method.

What is the depreciable base for the copy machine?

Describe the journal entry for the first year of depreciation.

What is the book value of the copy machine at the end of year 5?