Depreciation expense on YTD P&L statement

Any non-Tax accounting topics go here.
#1
Posts:
16
Joined:
8-Jan-2016 2:09pm
Location:
California
Sorry I have to ask a seemingly basic accounting question.

On a YTD P&L statement, how should the depreciation expense be calculated?

For example, let's say we have to prepare a YTD P&L from 1-1-2016 to 1-31-2016. We know there is no additional depreciable item in this period. Based on the former depreciable items, the depreciation amount for the whole year of 2016 would be $10,000. Are we supposed to prorate $10,000 to 32 days in order to come up with the amount on the YTD statement?
 

#2
KimCPA  
Posts:
35
Joined:
1-Jul-2014 5:23am
Location:
AL
I'd just divide 10,000/12 = 833.33 per month and not worry about prorating per day. Then do a JE at the end of the month for the expense.
 

#3
Posts:
16
Joined:
8-Jan-2016 2:09pm
Location:
California
Thank you.

So can I take your reply to mean that, when preparing a YTD P&L statement, using proration is the correct way to come up with the YTD depreciation expense?
 

#4
Noobie  
Posts:
1134
Joined:
22-Apr-2014 1:35pm
Location:
Jacksonville, FL
I do the prorated amount on a monthly AJE.
 

#5
Posts:
6041
Joined:
22-Apr-2014 3:06pm
Location:
WA State
Noobie,

It seems valuable to point out that some of these threads are months old. The discussion has long grown cold.
~Captcook
 


Return to General Accounting



Who is online

Users browsing this forum: No registered users and 18 guests