Govermental Accounting Compute The Expense and Expenditure for the Grambling Hou
ID: 2335863 • Letter: G
Question
Govermental Accounting
Compute The Expense and Expenditure for the Grambling Housing Development for the year ended December 31, 2016 based on the following data:
Grambling Housing Development, a small housing service nonprofit agency, began operations on January 1, 2016, with $40,000 cash and $150,000 Equipment, on which $60,000 was owed on a note to Chase Bank. The equipment was expected to have a remaining useful life of 25 years with no salvage value. During its first year of operations, ending December 31, 2016, Grambling Housing paid or accrued the following:2.Utilities, $24,0004.Capital Outlay-additional houses were purchased on January 3, 2016 for $300,000 expected to have a 25 year useful life.
Salaries and other personnel costs, $100,000
Utilities $24,000
Debt service-interest $5,500 and payment on long-term note principal $10,000
Capital Outlay-additional houses were purchased on January 3, 2016 for $300,000 expected to have a 25 year useful life.
Explanation / Answer
WN
Calculation of Total depreciation on equipment
Calculate Depreciation of Equipment
Cost of Equipment =$150000
No of useful Yrs =25 yrs
Depreciation of eqipment =Cost of equipment/No of useful yrs
= $150000/25
= $6000
Depreciation of Additional depreciation :
Cost of equipment =$300000
No of useful life =25
Deprecaition= Cost of equipment/No of Yrs
=$12000
Total Depreciation = $6000+$12000
= $18000
Compute the expenses and expenditures of G Housing Development for the yr ended 31 dec 2016.
Expenses Expensitures
Salaries and Other Personal Cost $100000 $100000
Rent and Utilities $24000 $24000
Debt Service Interest $5500 $5500
Payment of Long Term Note Principal - $10000
Equipment Purchase - $300000
Depreciation $18000 -
Total $147500 $439500
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