CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 18-3LESSON 18-3

Journalizing Depreciation Expense

2

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-3

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.

PREPARING PLANT ASSET RECORDSPREPARING PLANT ASSET RECORDS

11

22

33

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2. Do not write in Section 2 until the asset is disposed of.

1. Write the information in Section 1 when the asset is purchased.

3

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-3

JOURNALIZING ANNUAL DEPRECIATION JOURNALIZING ANNUAL DEPRECIATION EXPENSEEXPENSE page 543

3. Record adjusting entry

2. Accumulated Depreciation credit

1. Depreciation Expense debit

11

3333

22

4

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-3

POSTING AN ADJUSTING ENTRY FOR POSTING AN ADJUSTING ENTRY FOR DEPRECIATION EXPENSEDEPRECIATION EXPENSE

1. Debit Depreciation Expense.

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2. Credit Accumulated Depreciation.

1122

5

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-3

TERM REVIEWTERM REVIEW

plant asset record

page 545