This document discusses journalizing and recording depreciation expense. It explains that each year an asset is owned, an adjusting entry must be made to record the annual depreciation expense by debiting depreciation expense and crediting accumulated depreciation. The adjusting entry is then posted, debiting depreciation expense and crediting accumulated depreciation. A plant asset record is also used to track information about assets over their useful lives.

1. LESSON 18-3
Journalizing Depreciation
Expense
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 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.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-3

3. 3
JOURNALIZING ANNUAL
DEPRECIATION EXPENSE
page 543
2
1
3
3
1. Depreciation Expense debit
2. Accumulated Depreciation credit
3. Record adjusting entry
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-3

4. 4
POSTING AN ADJUSTING ENTRY FOR
DEPRECIATION EXPENSE
page 544
1. Debit Depreciation Expense.
2. Credit Accumulated
Depreciation.
1
2
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-3

5. 5
TERM REVIEW
page 545
 plant asset record
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-3

6. 5
TERM REVIEW
page 545
 plant asset record
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-3