这节课我们主要学习的是折旧费用的Straight-line method。在straight-line method下，折旧费用的特点和如何计算折旧费用。如何记录折旧费用（general entry and account）以及如何将折旧费用记录在会计报表里。
课程大纲：
Part 1: Straight-Line Method and Depreciation
--- Dep Exp. by using HC, RV and Useful life
--- Dep. Exp. by Depreciable value and Depreciation Rate
--- Less than 1 year Depreciation Expense
Part 2: Recording of Depreciation
--- Accumulated Depreciation
Part 3: Reporting of Depreciation
--- Income Statement
--- Balance Sheet
Part 1 什么是straight line method?
折旧政策相信: 折旧费用是不随使用时间变动的; 资产一直有相同的表现，不随使用时间变动（never become slow and old, performance stay the same）
第一种折旧费用计算方法：
通过Historical cost, Residual Value和useful life来计算Depreciation expense
具体过程如下
【例题1】
在这个题目中，并没有说Residual Value，意味着residual value为0; useful life 五年。
【例题2】
很明显，HC为5000，RV为800，useful life是3年
我们得出：折旧费用=1400
意味着：每一年，这个资产的价值将下降1400。
它产生的原因是我们使用资产去获得Revenue。因此我们需要将这个折旧费用从Revenue里扣除。
如果题目问：if we want to a higher net profit, would not it be nice since this it is not recorded anywhere?
答：it is relevant to include the 1400 inorder to calculate a accurate profit and thus make a better decision-making.
【例题3】
第二种折旧费用计算方法：
通过Depreciable Value和Depreciation rate来计算Depreciation Expense
Depreciable Value
在例题1中，residual value=0, 因此depreciable value=32000
在例题2中, residual value=800, 因此depreciable value=4200
Depreciation Rate, 我们通常使用折旧率
比如例题1，折旧率就是28% p.a.
有了折旧率和Depreciable value，我们就可以计算折旧费用
【例题】
如何计算少于一年的折旧费用
这个题中，产生了四个月的折旧费用，所以
练习题：
Q1:
Rate of depreciation = Depreciation Expense/ HC
Depreciation Expense=(60000-12000)/8=6000
Rate of depreciation=6000/60000=10%
Q2
The asset has been used for 5 month
Depreciation Expense=10%*5/12*6000=2500
Part 2 Recording Depreciation
Recording的具体流程是：
1.当折旧费用产生时，Debit Depreciation Expense; Credit Accumulated Depreciation in GJ
2.Posting to General Ledger
3.Closing and Balancing
Accumulated Depreciation:
一个资产上，发生的折旧费用的总和;
是Ledger Account, A Negative Asset
在straight line method里，Accumulated Dep每年增加量一定
【例题】
第一步：先计算出Debit的总和，还有Credit的总和；0 and 4800
第二步：另起一行，将总和最大的一边，它的数额写在Credit和Debit（两边都写）；4800
第三步，计算Debit和credit的差值。4800-0=4800。
如果Debit<credit, Debit Balance 4800 (上方), Credit Balance, 4800 (下方)
Part 3 Reporting of Depreciation
涉及到折旧费用的报表有两个，一个是利润表，一个是资产负债表
Income Statement，”Less Other Expenses”部分中，Depreciation Expense
Balance Sheet:
Non-current Asset is recorded at carrying value
Carry Value = Historical cost - Accumulated Depreciation
【练习题1】
Q1
Label 1: HC = 29000Label 2: Accumulated Depreciation = 9000,
Label 3: Carry Value = 20000, it represent the future value of asset remaining which is yet to consumed by the business
Q2
我们可以通过Second Additional Information，得出Depreciation expense = 3000
Q3
Posting to two general accounts
Accumulated Depreciation of Equipment: Credit 3000
Depreciation Expense of Office Furniture: Debit 3000
Q4
In extract of non-current asset in the Balance Sheet,
Q5
我们知道折旧费用是3000，Residual Value是2000，HC是29000
Useful life = (29000-2000) / 3000= 9 years
【练习题2】
Q1:
To ensure that profit is calculated accurately by providing correct figures of revenue and expense incurred in the current reporting period.
Q2:
From additional information, three events need to be recorded and adjusted
Inventory Loss：
Depreciation Expense:
Prepaid Advertising: 七个月的广告预付款是2800，每个月是400，我们已经消耗了五个月，所以advertising expense是2000
