Question

INVOICE NAME	TERM START	TERM END		INVOICE AMOUNT
	3/6/2014	3/6/2015		4,670.00
	3/6/2013	3/6/2014		4,670.00
20140307_3_PL	3/7/2014	3/7/2015		10,000.00
20584307_3_PL	3/7/2013	3/7/2014		9,000.00
PLN-02983	3/31/2014	3/30/2015		1,500.00
71588	4/1/2014	4/1/2015		3,228.00
713423	5/23/2014	3/31/2015		10,416.00
11234	1/1/2014	12/31/2014		1,000.00

The above includes information pertaining to the terms and invoice amounts of several prepaid expenses. Calculate the monthly amortization using the quarter of a month depreciation method (.25, .5, .75). Quarter of a month method of depreciation.

Answer 1

prepaid expenses	4,670.00	4,670.00	10,000.00	9,000.00	1,500.00	3,228.00	10,416.00	1,000.00
no. of months	12	12	12	12	12	12	10	12
per month	389.17	389.17	833.33	750.00	125.00	269.00	1,041.60	83.33
ddd/mm/yr	6/3/2014	6/3/2013	7/3/2014	7/3/2013	31/3/14	1/4/2014	23/5/14	1/1/2014
	6/3/2015	6/3/2014	7/3/2015	7/3/2014	30/3/15	1/4/2015	31/3/15	31/12/14
2013
Mar		389.17		750.00
Apr		389.17		750.00
May		389.17		750.00
June		389.17		750.00
July		389.17		750.00
Aug		389.17		750.00
Sept		389.17		750.00
Oct		389.17		750.00
Nov		389.17		750.00
Dec		389.17		750.00
2014 Jan		389.17		750.00				83.33
Feb		389.17		750.00				83.33
Mar	389.17		833.33		31.25			83.33
Apr	389.17		833.33		125.00	269.00		83.33
May	389.17		833.33		125.00	269.00	260.40	83.33
June	389.17		833.33		125.00	269.00	1,041.60	83.33
July	389.17		833.33		125.00	269.00	1,041.60	83.33
Aug	389.17		833.33		125.00	269.00	1,041.60	83.33
Sept	389.17		833.33		125.00	269.00	1,041.60	83.33
Oct	389.17		833.33		125.00	269.00	1,041.60	83.33
Nov	389.17		833.33		125.00	269.00	1,041.60	83.33
Dec	389.17		833.33		125.00	269.00	1,041.60	83.37
Total	3,891.70	2,724.19	8,333.30	5,250.00	1,156.25	2,421.00	7,551.60	1,000.00
Outstanding balance	778.30	1,945.81	1,666.70	-	343.75	807.00	2,864.40	-

while calculating quarter of a month depreciation method refers to if the prepaid expense was incurred before 7th it should be considered full amortisation, if the prepaid expense incurred before 15th to be taken 0.75 to be depreciated for that month, if it is in the last but week then the depreciation should be calculated at 0.50 and it if in the  last week purchase then it should be 0.25 to be applied.

if we consider example: 10416 the prepaid expense was incurred on 23rd may so the first month should be given only 0.25% of depreciation