Lesson 18 3
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This document discusses journalizing and recording depreciation expense. It explains that each year an asset is owned, an adjusting entry must be made to record the annual depreciation expense by debiting depreciation expense and crediting accumulated depreciation. The adjusting entry is then posted, debiting depreciation expense and crediting accumulated depreciation. A plant asset record is also used to track information about assets over their useful lives.
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Lesson 18 3
- 1. LESSON 18-3 Journalizing Depreciation Expense CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
- 2. 2 PREPARING PLANT ASSET RECORDS page 542 1 1. Write the information in Section 1 when the asset is purchased. 2 2. Do not write in Section 2 until the asset is disposed of. 3 3. Each year the asset is owned, record the year’s annual depreciation expense in Section 3. Calculate and record accumulated depreciation and ending book value. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-3
- 3. 3 JOURNALIZING ANNUAL DEPRECIATION EXPENSE page 543 2 1 3 3 1. Depreciation Expense debit 2. Accumulated Depreciation credit 3. Record adjusting entry CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-3
- 4. 4 POSTING AN ADJUSTING ENTRY FOR DEPRECIATION EXPENSE page 544 1. Debit Depreciation Expense. 2. Credit Accumulated Depreciation. 1 2 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-3
- 5. 5 TERM REVIEW page 545 plant asset record CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-3
- 6. 5 TERM REVIEW page 545 plant asset record CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-3