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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Buying Plant Assets Completing a plant asset record. Buying a plant asset for cash.

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Presentation on theme: "CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Buying Plant Assets Completing a plant asset record. Buying a plant asset for cash."— Presentation transcript:

1 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Buying Plant Assets Completing a plant asset record. Buying a plant asset for cash or on account. Calculating and paying property tax.

2 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 8 Objectives Accounting for Uncollectible Accounts After studying Chapter 8, you will be able to: Define accounting terms related to plant assets and depreciation. Identify accounting concepts and practices related to accounting for plant assets and depreciation. Journalize entries for buying plant assets. Calculate and record property tax expense. Calculate and record depreciation expense for a plant asset using straight- line depreciation. Journalize entries disposing of plant assets. Calculate depreciation expense using other methods. 2 LESSON 8-1

3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 8-1 plant asset record: an accounting form on which a business records information about each plant asset real property: land and anything attached to it personal property: all property not classified as real property assessed value: the value of an asset determined by tax authorities for the purpose of calculating taxes 3 LESSON 8-1

4 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 8-1 1.Complete when asset is purchased. 2.Complete when asset is disposed of. 3.Complete each year to record annual depreciation expense. PLANT ASSET RECORD page 225 1 2 3

5 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 8-1 BUYING A PLANT ASSET FOR CASH page 226 January 2. Paid cash for new copying machine, $1,680.00. Check No. 62.

6 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 8-1 BUYING A PLANT ASSET ON ACCOUNT page 226 January 2. Bought an office computer on account from Discount Computers, $3,300.00. Memorandum No. 70.

7 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 8-1 CALCULATING AND PAYING PROPERTY TAX page 227 Feb 1. Paid cash for property tax, $3,250.00. Check No. 122. Annual Property Tax = Tax Rate  Assessed Value $65,000.00  5% = $3,250.00

8 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 8-1 DEFINE TERMS REVIEW In Quizlet plant asset record real property personal property assessed value page 228 Create: Chapter 8 AdvAcc (then SAVE)

9 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for today: Audit Your Understanding 8-1 1.What are the three sections of a plant asset record? 2.Why are asset purchases not recorded in a purchases journal? 3.What accounts are affected, and how, by an entry to pay property tax? 9 LESSON 8-1 In a Word Document, SaveAS: Chapter8-1AYUYourName And drop in my Inbox today!

10 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Complete the following assignments for Chapter 8-1 today Define Terms Review on page 228. Answer Audit Your Understanding questions on page 228. Complete Work Together 8-1 on Aplia – page 228. Complete On Your Own 8-1 on Aplia – page 228. Complete Application Problem 8-1 on Aplia – page 251. Complete Application Problem 8-2 on Aplia – page 251. 10 LESSON 8-1


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