Page 313 - Accounting Information Systems

284 PART II Transaction Cycles and Business Processes

FI G U RE
6-12 DEPRECIATION SCHEDULE

OZMENT’S INDUSTRIAL SUPPLY
ASSET LISTING WITH DEPRECIATION SCHEDULES
FROM 200 THROUGH 200

Code Type Description Month# Depn. exp. Acc. depn. Book value

200 OFF&F
OFFICE FURNITURE
Depn. method: SYD
Life in years: 5
Date acquired 2/01/09
Date retired
Cost 5,500.00
Residual 500.00
Acc. Depn. 2,222.23
1 138.89 138.89 5,361.11
2 138.89 277.78 5,222.22
3 138.89 416.67 5,083.33
4 138.89 555.56 4,944.44
5 138.89 694.45 4,805.55
6 138.89 833.34 4,666.66
7 138.89 972.23 4,527.77
8 138.89 1,111.12 4,388.88
9 138.89 1,250.01 4,249.99
10 138.89 1,388.90 4,111.10
• • • •
• • • •
• • • •
52 27.78 4,777.80 722.20
53 27.78 4,805.58 694.42
54 27.78 4,833.36 666.64
55 27.78 4,861.14 638.86
56 27.78 4,888.92 611.08
57 27.78 4,916.70 583.30
58 27.78 4,944.48 555.52
59 27.78 4,972.26 527.74
60 27.78 5,000.04 499.96
Assets listed: 1

Acquisition Procedures

The process begins when the fixed asset accounting clerk receives a receiving report and a cash disburse-
ment voucher. These documents provide evidence that the firm has physically received the asset and
show its cost. From the computer terminal, a clerk creates a record of the asset in the fixed asset subsidi-
ary ledger. Figure 6-14 presents a possible record structure for this file.