locks up my workout for a day let's see grizzly oh boy oh man that's this
afternoon us after the lift because after all I have to stay the strongest
CPA in Florida or else how could I do these videos but couldn't been strongest
licensee 3 in the state of Florida that's who I am I am CPA strength okie
dokie what do you do CPA strings I teach the world basic accounting through
building blocks basis my basics by basics by basics I have a classic series
you're watching a part of it you're watching an installment of the classic
series right now so you should be so thrilled that you found me on the
Internet you should be so thrilled this is number
62 straight-line depreciation and you're wondering hey TG 61 other ones if this
is 52 and you are so smart and you are correct this is big link the card hit
this this is the so bringing to the other 61 videos of the classic series
really no particular order you can make them there you can make a playlist of
your own in the in the order that you like or certain videos that you like of
mine and you can even go to other channels and find videos that you like
over there to make yourself a YouTube playlist to help yourself to help you
better yourself and achieve your goals and go on to bigger and better things
and don't let nobody tell you can't do what you're dreaming about that's that's
just that's just been just potty mouth that's rubbish that's rush
daud-what my purple eye dog we're doing with a purple to them to order purple
babies go over to purple oh come on man well man let's do it is it's a
straight-line depreciation what I want to say about what I want to say about
the straight-line depreciation is and pretty much most other things with with
accounting like series and stuff like depreciation and then we're doing we're
going about straight-line depreciation this
one in the next one we're gonna talk about double declining balance maybe you
know take a few hours don't worry about what everybody don't
worry about it somebody else seems they just learn in two seconds and they can
ace everything I don't like those people anyways okay I'll tell you but don't
don't worry about anybody else that that's when I started making a lot of
gains in you know my CPA studying because that I wasn't worried about how
many how many hours everyone else was studying I was just studying as much as
I took it in and I need more than most people so let's go let's do the
straight-line depreciation here facts the facts that we are using now we
discussed in the in the last video I just talked about depreciation number 61
the facts reason we've our truck from $5,000 a pizza truck because I'm
fattening a pizza but a pizza truck for $5,000 useful a five years no residual
value we're just going to once we're done with over it's been freaking burn
it those are straight-line depreciation I
want you to see that when how would you get how would you get the amount every
year I want you to notice that the depreciation for the year I filled it in
is a straight line $2,000 depreciation for year one year two year three year
four of your five it's all $1000 depreciation it's in a straight line
like if if four thousand dollars brought you to this level that would be
depreciation year one thousand dollars a year $2,000 $3,000 $4,000 500 straight
line it's the same amount every year that's straight-line depreciation and
nutshell basically so if you know that now we can just let's just fill in the
rest of the chart I know how the formula how to get straight line and you can
come you can however really however in your mind makes sense to you that you
bought a chart for five years and you're going to eat I mean you bought for five
thousand use it for five years that's $1,000 a year with those raising
numbers so the formula to figure out straight-line depreciation is the cost
$5,000 - residual value we have no residual
value so 5,000 minus zero is 5,000 divided by our useful life of five so
5,000 divided by five is 1,000 so that's going to be our depreciation every year
until we expense the whole fight until we expensable $5,000 via depreciation
expense boom all right another thing another thing I did fill in let's look
let's just scrutinize your chart a little bit we have different year year 1
year 2 year 3 year 4 year 5 next next line over and our chart we have the cost
of our pizza truck the cost never changes kind of like the journal entry
for depreciation you know you don't you don't mess the cost
ooh anyways the cost of doesn't change cost us five thousand dollars every year
not so much a cost that doesn't change our next line over sorry for the short
shorting the word abbreviated sorry for abbreviating I don't like rereading so
much other you know the word sorry for that I had to do it here for room this
is an accumulated depreciation to the beginning of the year the next line I
didn't feel anything right about together or you can try to do it now
before we afford this exercise next line book value beginning of year against the
only single Riggs out together as well the next one is straight-line annual
depreciation rate so you're going to see it's a it's twenty percent this is going
to kind of come into play when we do the next one the rate would be twenty
percent because that the one hundred percent total twenty percent forty
percent percent 80% 100% so it's the same it's a
straight line so it's the same percent every year and then over there we have
depreciation for the year and it's straight line a thousand dollars then to
the market that we have Book value and of year so let's fill this chart
together year one we bought we bought our pizza truck for five thousand
dollars accumulated depreciation and beginning the year well we just bought
it so we haven't had we haven't we haven't had time to do a depreciation
expense or anything so depreciation expense and similarly depreciation or
like biffle's so we haven't had any of that yet so accumulate depreciation we
going to the Year Zero Book value the beginning of the year well what's in our
books what's the pizza truck on our books it's
going to be what we bought it for minus accumulated depreciation and that's
going to be our Book value that's how much to be on our books but we don't
have any depreciating accumulated depreciation yet so Book value gained
users hundred five thousand dollars
there we go all right run through the straight-line annual depreciation rate
twenty percent depreciation for the year one thousand look value end of year how
we're going to get that how are we going to get that well we've got a book value
beginning of here all right - depreciation for the year and that is
going to be four thousand dollars is our Book value all right
now it's a straight-line depreciation here straight line because the rate and
the amount of straight of differentiation are the same every year
so now let's go over to accumulated depreciation beginning of year one
thousand dollars to lose depreciated once for one thousand dollars book value
beginning here well at the end of CL sergeants is here to now so we've done
our tax return here both value the end of year one was four thousand so after
the end of the year the book value that means the same book values for the
beginning of year so book Riley beginning of the year 4000 all right -
thousand depreciation for thee for this year for year to four thousand the
beginning Book value minus depreciation for the year is the book value at the
end of the year for year 2 which is $3,000 that's Book value let's go to
year three now what's the accumulated depreciation beginning of the year well
it was one thousand but then we had another one thousand of depreciation so
two thousand dollars accumulated appreciation for like know how YouTube
so hard let's go ma'am free all hot veteran the air off there's our own yet
important soon but we're almost done so let's keep going here
we're on year three here what's going on here three what's our human depreciation
the beginning of the year well it was one thousand then we just had one
thousand more dollars depreciation so two thousand dollars accumulated
depreciation beginning the year what's the book value again if your book values
are cost accumulated depreciation so $3,000 is
our Book value - the same rate depreciation which is a straight line -
$1000 depreciation for year 3 the book value at the end of the year is $2,000
so folks write an interview here is the book value in the B gain of the year so
well why don't I switch it up so this is 2000 right uh-huh
accumulated depreciation begins the year now we're in the airport here or in here
for we've been using the fourth year we've been using our truck here our
little pizza truck got a lot of pizzas out we've been grinding our bums over
this pizza truck but now but we it was accumulated depreciation reading of the
year was 2000 then we added another 2000 depreciation so arcuate appreciation for
beginning of here for is $3,000
all right enough is if we bought the pizza tie for $5,000 when you have
accumulated depreciation of $3,000 that means our Book value is $2,000 for our
pizza truck now we have the same straight-line depreciation every year so
we'd appreciate a thousand dollars for the year so what's our Book value at the
end of the year for what's our Book value here well it was two thousand
dollars when we just added another thousand dollars of depreciation to to
or subtracted nine thousand dollars depreciation from the book value so two
thousand dollars book value minus depreciation one thousand dollars at the
end of year four is the book value end of the year now what's the accumulated
depreciation at the beginning of the year what was three two at the end of
the year five is the last year where's he gonna burn this pizza truck after
this year but it's been what it's been it's been roya sending oil to us was
three thousand and year four was three thousand accumulated depreciation you
had another thousand dollars depreciation for the year so the
accumulated depreciation was four thousand dollars the beginning of the
year
what's the book value at the end of the year what's the book value at the
beginning of the year year what's the book value of the pizza truck beginning
of year five well what was the book value the end of year for $1,000 so the
at the end is just a beginning so the end is the beginning the end is just the
beginning the end is just a beginning
$1,000 that's the book value beginning year five now let's take our same
depreciation straight-line of a thousand dollars that we do every year now this
is the last year of depreciation and lo and behold the book values beginning of
the year minus depreciation the book value at the end of year five is
zero so I think this is a great thing this is a great exercise I hope you
enjoyed this one I went a little long let's see how I can edit it but I don't
know I'm making no promises but anyways hope you enjoyed it if you did like it
please leave a like it helps the channel more than you would know leave a comment
I love I love reading the comments we'll have answer in the comments it helps the
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don't be stingy with the accounting and I'll hope to see you in the next one
okay because you know I'm going to make it next one and keep it positive man
don't be hatin don't be hatin just worry about yourself man
no I'm saying deuces