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Accounting 3
Chapter 21
Section 3
Preparing Plant Asset Records
A separate record is kept for each plant asset.
This is called a Plant Asset Record.
 Section 1 is prepared when the asset is
purchased. It includes, the description, account
numbers, serial numbers, cost, etc.
 Section 2 provides space for recording the
disposal information of the asset when it is
taken out of use.
 Section 3 provides space for recording annual
depreciation expense and the changing book
value each year it is used.

Plant Asset Record Example
Plant Asset Record No : ________
General Ledger Account No: __________
Description: ________________________
General Ledger Account: ___________________
Date Bought: _____________ Serial Number: __________________ Original Cost: _____________
Est. Useful Life: __________
Disposed of:
Date: _________________
Year
Est. Salvage Value: _________ Depreciation Method: ___________
Discarded _________ Sold __________ Traded __________
Disposal Amount: ____________________
Annual Depreciation
Expense
Accumulated Depreciation
Ending Book Value
Journalizing Annual Depreciation Expense
At the end of the fiscal year, after each
plant assets depreciation has been figured
and recorded, the total depreciation
expense for all plant assets in the same
plant asset account is calculated.
 In example, the depreciation expense of
all plant assets in the store equipment
account would need to be calculated.

Journalizing Annual Depreciation Expense
To journalize the depreciation expense of a plant
asset account, an adjusting entry must be made
using two accounts in the General Journal.
 First is Depreciation Expense- (type of plant
asset). This account has a normal debit balance
and increases with a debit.
 Second is Accumulated Depreciation- (type of
plant asset). This account is used to keep track
of all accumulated depreciation for each type of
plant asset. It has a normal credit balance
(because it is a contra asset account) and
increases with a credit.

Winning Edge determined that total depreciation expense
for store equipment is $8,750.00. After the adjustment has
been planned on the worksheet…
15
General Journal
Date
Account Title
31 Depreciation Expense-Store Equip.
Acc. Depr.-Store Equipment
Doc.
Post
No.
Ref.
Page ___
Debit
Credit
8 7 5 0 00
8 7 5 0 00
Posting for this transaction is done in the same way any other posting for General
Debit and Credit would be done.
Work Together p. 556
On next four slides
134
Plant Asset Record No : ________
1215
General Ledger Account No: __________
Television
Description: ________________________
Store Equipment
General Ledger Account: ___________________
January 4, 2001
15SG152
$700.00
Date Bought: _____________
Serial Number: __________________
Original Cost: _____________
3 years
Est. Useful Life: __________
Disposed of:
Date: _________________
Year
$100.00
Straight-Line
Est. Salvage Value: _________
Depreciation Method: ___________
Discarded _________ Sold __________ Traded __________
Disposal Amount: ____________________
Annual Depreciation
Expense
Accumulated Depreciation
Ending Book Value
2001
2002
$200.00
$200.00
$200.00
$400.00
$500.00
$300.00
2003
$200.00
$600.00
$100.00
1205
135
Plant Asset Record No : ________
General Ledger Account No: __________
Office Desk
Description: ________________________
Office Equipment
General Ledger Account: ___________________
May 27, 2001
GE572N
$920.00
Date Bought: _____________
Serial Number: __________________
Original Cost: _____________
6 years
Est. Useful Life: __________
Disposed of:
Date: _________________
Year
2001
2002
2003
$200.00
Straight Line
Est. Salvage Value: _________
Depreciation Method: ___________
Discarded _________ Sold __________ Traded __________
Disposal Amount: ____________________
Annual Depreciation
Expense
$70.00
$120.00
$120.00
Accumulated Depreciation
$70.00
$190.00
$310.00
Ending Book Value
$850.00
$730.00
$610.00
Gabriel, Inc.
Worksheet
For Year Ended, December 31, 2003
Account Title
Office Equipment
Accumulated Depreciation-Office Equipment
Depreciation Expense-Office Equipment
Trial Balance
Debit
Adjustments
Credit
Debit
Credit
24 5 8 7 00
8 4 5 4 00
(f)
(f)
3 1 2 0 00
3 1 2 0 00
18
General Journal
Date
Account Title
Doc.
Post
No.
Ref.
Page ___
Debit
Credit
Adjusting Entries
Dec
31 Depreciation Expense-Office Equip
Acc. Depreciation-Office Equip
6120
1210
3 1 2 0 00
3 1 2 0 00
General Ledger
Account
Accumulated Depreciation-Office Equipment
Date
Jan 1
Item
Date
Dec 31
Ref
Debit
Credit
1210
BALANCE
DEBIT
CREDIT
Balance
8 4 5 4 00
Dec 31
Account
Post
Acct No.
G18
3 1 2 0 00
11 5 7 4 00
Depreciation Expense-Office Equipment
Item
Post
Ref
G18
Debit
3 1 2 0 00
Credit
Acct No.
BALANCE
DEBIT
3 1 2 0 00
CREDIT
6120
Assignment
Do Application 21-3 and 21-4 by hand.
 Turn it into Mrs. Middleton.
 Move on to Section 21-4.
