1. LESSON 18-3 Journalizing Depreciation Expense
12/8/2018
LESSON 18-3
Journalizing Depreciation Expense
Original created by M.C. McLaughlin, Thomson/South-Western
Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

2. PREPARING PLANT ASSET RECORDS
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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.
An accounting form on which a business records information about each plant asset is called a plant asset record
LESSON 18-3

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

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

5. TERM REVIEW
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plant asset record
LESSON 18-3