1. RECORDING THE BUYING OF A PLANT ASSET
January 2, 20X1. Paid cash for a display case, $1, Check No. 7.
Cash
Store Equipment
1. Which accounts are affected?
Store Equipment
Cash
Debit
Normal Balance
1,250.00
2. How is each account classified?
Store Equipment is an asset account.
Cash is an asset account. 
Debit
Normal Balance
3. How is each classification changed?
Assets are increased.
Assets are decreased.
1,250.00 
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
Lesson 21-1, page 546

2. RECORDING THE BUYING OF A PLANT ASSET4 3 2 1
1. Account Title
2. Cost of the Plant Asset
3. Cash Paid
4. Post
Lesson 21-1, page 546

3. CALCULATING AND PAYING PROPERTY TAX
February 1. Harrison Manufacturing paid cash for property tax, $ Check No. 187.
Assessed Value  Tax Rate = Annual Property Tax    
$70,  1.2% = $840.00
Cash
Property Tax Expense
Debit
Normal Balance
Debit
Normal Balance
840.00
840.00  
Lesson 21-1, page 547

4. TERMS REVIEW current assets plant assets real property
personal property
assessed value
Lesson 21-1, page 548