1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-3 Journalizing Depreciation Expense

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 18-3 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. PREPARING PLANT ASSET RECORDS 1 2 3 page 542 2.Do not write in Section 2 until the asset is disposed of. 1.Write the information in Section 1 when the asset is purchased.

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

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

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 18-3 TERM REVIEW plant asset record page 545