Book Keeping Task/Depreciation - Revision history

Brett Wuth: /* Supplies */

Brett Wuth — Mon, 24 Feb 2020 09:24:33 GMT

Supplies

←Older revision		Revision as of 09:24, 24 February 2020
Line 29:		Line 29:
	Uniforms (e.g. SAR hats and shirts) are technically considered Fixed Assets (capital cost allowance class 12).		Uniforms (e.g. SAR hats and shirts) are technically considered Fixed Assets (capital cost allowance class 12).
	But they are depreciated 100% in the first year -- with no half-year rule applying.		But they are depreciated 100% in the first year -- with no half-year rule applying.
		+	This is the same way expenses are handled.
	So they can be treated as supplies.		So they can be treated as supplies.
	([https://www.taxtips.ca/smallbusiness/businessexpenses.htm taxtips.ca], {{link\|Image:Members:2020-02-23 TaxTips.ca re uniforms.pdf\|cached}})		([https://www.taxtips.ca/smallbusiness/businessexpenses.htm taxtips.ca], {{link\|Image:Members:2020-02-23 TaxTips.ca re uniforms.pdf\|cached}})

Brett Wuth — Sun, 23 Feb 2020 19:38:35 GMT

Supplies

←Older revision		Revision as of 19:38, 23 February 2020
Line 20:		Line 20:
	but if not, create a new account for the new type of equipment.		but if not, create a new account for the new type of equipment.
	=== Supplies ===		=== Supplies ===
-	This section added 2020-02-23 and has not been reviewed by an auditor.	+	''This section added 2020-02-23 and has not been reviewed by an auditor.

	Supplies are items that are consumed in the process of the organization doing its work.		Supplies are items that are consumed in the process of the organization doing its work.

Brett Wuth — Sun, 23 Feb 2020 19:38:24 GMT

Supplies

←Older revision		Revision as of 19:38, 23 February 2020
Line 30:		Line 30:
	But they are depreciated 100% in the first year -- with no half-year rule applying.		But they are depreciated 100% in the first year -- with no half-year rule applying.
	So they can be treated as supplies.		So they can be treated as supplies.
-	([[https://www.taxtips.ca/smallbusiness/businessexpenses.htm taxtips.ca]], {{link\|Image:Members:2020-02-23 TaxTips.ca re uniforms.pdf\|cached}})	+	([https://www.taxtips.ca/smallbusiness/businessexpenses.htm taxtips.ca], {{link\|Image:Members:2020-02-23 TaxTips.ca re uniforms.pdf\|cached}})

	=== Amortization Expense ===		=== Amortization Expense ===

Brett Wuth — Sun, 23 Feb 2020 19:38:11 GMT

Supplies

←Older revision		Revision as of 19:38, 23 February 2020
Line 20:		Line 20:
	but if not, create a new account for the new type of equipment.		but if not, create a new account for the new type of equipment.
	=== Supplies ===		=== Supplies ===
-	This section added 2020-02-23.	+	This section added 2020-02-23 and has not been reviewed by an auditor.
		+
		+	Supplies are items that are consumed in the process of the organization doing its work.
		+
		+	Supplies are not Fixed Assets and so should not be capitalized. Instead they are expensed at the time they are ordered.
		+	This applies even if a large inventory is ordered that will be consumed over several years.
		+
		+	Uniforms (e.g. SAR hats and shirts) are technically considered Fixed Assets (capital cost allowance class 12).
		+	But they are depreciated 100% in the first year -- with no half-year rule applying.
		+	So they can be treated as supplies.
		+	([[https://www.taxtips.ca/smallbusiness/businessexpenses.htm taxtips.ca]], {{link\|Image:Members:2020-02-23 TaxTips.ca re uniforms.pdf\|cached}})

	=== Amortization Expense ===		=== Amortization Expense ===

Brett Wuth — Sun, 23 Feb 2020 19:28:28 GMT

Fixed Assets

←Older revision		Revision as of 19:28, 23 February 2020
Line 19:		Line 19:
	Often there's already an account for that type of item (e.g. GPS's),		Often there's already an account for that type of item (e.g. GPS's),
	but if not, create a new account for the new type of equipment.		but if not, create a new account for the new type of equipment.
		+	=== Supplies ===
		+	This section added 2020-02-23.

	=== Amortization Expense ===		=== Amortization Expense ===

Brett Wuth — Sun, 23 Feb 2020 19:10:43 GMT

Amortization Expense

←Older revision		Revision as of 19:10, 23 February 2020
Line 25:		Line 25:
	Assets are depreciated at the specified percentage each year.		Assets are depreciated at the specified percentage each year.
	50% of the stated rate is used for assets that are purchased within the financial year.		50% of the stated rate is used for assets that are purchased within the financial year.
-	'''Depreciation is done on the declining balance.'''~~, i~~.e. the balance at end of the year is taken and used to calculate depreciation.	+	'''Depreciation is done on the declining balance.''' I.e., the balance at end of the year is taken and used to calculate depreciation.

	Example:		Example:

Brett Wuth — Fri, 17 Jan 2020 21:28:44 GMT

Amortization Expense

←Older revision		Revision as of 21:28, 17 January 2020
Line 28:		Line 28:

	Example:		Example:
-	* Satellite Phones $5000.00 depreciated value at start of the year	+	* Satellite Phones $5000.00 depreciated value at start of the year. (This can be found on the previous year's balance sheet.)
	* purchased one more during the year for $1,000.00		* purchased one more during the year for $1,000.00
	* Add the $5,000 and 1/2 of the $1,000.00 = $5,500.00 at 20% = $1,100.00 in depreciation which would be booked at the end of the year.		* Add the $5,000 and 1/2 of the $1,000.00 = $5,500.00 at 20% = $1,100.00 in depreciation which would be booked at the end of the year.

Brett Wuth — Fri, 17 Jan 2020 21:11:58 GMT

Fixed Assets

←Older revision		Revision as of 21:11, 17 January 2020
Line 16:		Line 16:


-	Any fixed assets purchased within the year should be booked against ~~the~~ fixed asset account.	+	Any fixed assets purchased within the year should be booked against a fixed asset account.
	Often there's already an account for that type of item (e.g. GPS's),		Often there's already an account for that type of item (e.g. GPS's),
	but if not, create a new account for the new type of equipment.		but if not, create a new account for the new type of equipment.

Brett Wuth — Fri, 17 Jan 2020 21:10:14 GMT

Fixed Assets

←Older revision		Revision as of 21:10, 17 January 2020
Line 14:		Line 14:
	In some cases, this practice has not been applied to purchases in previous years.		In some cases, this practice has not been applied to purchases in previous years.
	PCSAR will continue to use the categories as is, without attempting to adjust for previous years.		PCSAR will continue to use the categories as is, without attempting to adjust for previous years.
		+
		+
		+	Any fixed assets purchased within the year should be booked against the fixed asset account.
		+	Often there's already an account for that type of item (e.g. GPS's),
		+	but if not, create a new account for the new type of equipment.

	=== Amortization Expense ===		=== Amortization Expense ===

Brett Wuth — Wed, 17 Oct 2018 04:51:07 GMT

Amortization Expense

←Older revision		Revision as of 04:51, 17 October 2018
Line 20:		Line 20:
	Assets are depreciated at the specified percentage each year.		Assets are depreciated at the specified percentage each year.
	50% of the stated rate is used for assets that are purchased within the financial year.		50% of the stated rate is used for assets that are purchased within the financial year.
-	'''Depreciation is done on the declining balance.''' ie the balance at end of the year and ~~use that figure~~ to calculate depreciation.	+	'''Depreciation is done on the declining balance.''', i.e. the balance at end of the year is taken and used to calculate depreciation.

	Example:		Example: