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Journalizing Depreciation Expenses for Plant Assets

Learn how to journalize and record annual depreciation expenses for plant assets, including calculating accumulated depreciation and book value adjustments. Understand the process from asset purchase to disposal and annual adjustments.

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Journalizing Depreciation Expenses for Plant Assets

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  1. LESSON 18-3 Journalizing Depreciation Expense

  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. LESSON 18-3

  3. 3 3 JOURNALIZING ANNUAL DEPRECIATION EXPENSE page 543 2 1 1. Depreciation Expense debit 2. Accumulated Depreciation credit 3. Record adjusting entry LESSON 18-3

  4. 1. Debit Depreciation Expense. 1 2 POSTING AN ADJUSTING ENTRY FOR DEPRECIATION EXPENSE page 544 2. Credit Accumulated Depreciation. LESSON 18-3

  5. TERM REVIEW page 545 • plant asset record LESSON 18-3

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