CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 14-5 Planning and Recording Depreciation Adjustments
CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 14-5 CALCULATING DEPRECIATION EXPENSE AND BOOK VALUE page 424 Estimated Total Depreciation Expense = Estimated Salvage Value – Original Cost $1,000.00=$250.00–$1, Annual Depreciation Expense = Years of Estimated Useful Life ÷ Estimated Total Depreciation Expense $200.00=5÷$1, Subtract the asset’s estimated salvage value from original cost. 2.Divide the estimated total depreciation expense by the years of estimated useful life. 1 2 (continued on next slide)
CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 14-5 CALCULATING DEPRECIATION EXPENSE AND BOOK VALUE page X3 Accumulated Depreciation = 20X3 Depreciation Expense + 20X2 Accumulated Depreciation $600.00=$ $ Ending Book Value = Accumulated Depreciation –Original Cost $650.00=$600.00–$1, (continued from previous slide)
CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 14-5 ANALYZING AND RECORDING ADJUSTMENTS FOR DEPRECIATION EXPENSE page Write the debit amounts. 2.Write the credit amounts. 3.Label the adjustments.
CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 14-5 TERMS REVIEW current assets plant assets depreciation expense estimated salvage value straight-line method of depreciation accumulated depreciation book value of a plant asset page 426