CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 8-1LESSON 8-1

Buying Plant Assets

Completing a plant asset record.Buying a plant asset for cash or on account.Calculating and paying property tax.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Chapter 8 ObjectivesChapter 8 ObjectivesAccounting for Uncollectible AccountsAccounting for Uncollectible Accounts

After studying Chapter 8, you will be able to:Define accounting terms related to plant assets and depreciation.Identify accounting concepts and practices related to accounting for plant assets and depreciation.Journalize entries for buying plant assets.Calculate and record property tax expense.Calculate and record depreciation expense for a plant asset using straight-line depreciation.Journalize entries disposing of plant assets.Calculate depreciation expense using other methods.

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LESSON 8-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Lesson 8-1Lesson 8-1

plant asset record: an accounting form on which a business records information about each plant asset

real property: land and anything attached to it personal property: all property not classified as real

property assessed value: the value of an asset determined by tax

authorities for the purpose of calculating taxes

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LESSON 8-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 8-1

1. Complete when asset is purchased.

2. Complete when asset is disposed of.

3. Complete each year to record annual depreciation expense.

PLANT ASSET RECORDPLANT ASSET RECORD page 225

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 8-1

BUYING A PLANT ASSET FOR CASHBUYING A PLANT ASSET FOR CASH page 226

January 2. Paid cash for new copying machine, $1,680.00. Check No. 62.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 8-1

BUYING A PLANT ASSET ON ACCOUNTBUYING A PLANT ASSET ON ACCOUNT page 226

January 2. Bought an office computer on account from Discount Computers, $3,300.00. Memorandum No. 70.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 8-1

CALCULATING AND PAYING CALCULATING AND PAYING PROPERTY TAXPROPERTY TAX page 227

Feb 1. Paid cash for property tax, $3,250.00. Check No. 122.

AnnualProperty Tax

=Tax Rate

Assessed Value

$65,000.00 5% = $3,250.00

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 8-1

DEFINE TERMS REVIEWDEFINE TERMS REVIEWIn QuizletIn Quizlet

plant asset record real property personal property assessed value

page 228

Create: Chapter 8 AdvAcc (then SAVE)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Exit Ticket for today:Exit Ticket for today:Audit Your Understanding 8-1Audit Your Understanding 8-1

1. What are the three sections of a plant asset record?

2. Why are asset purchases not recorded in a purchases journal?

3. What accounts are affected, and how, by an entry to pay property tax?

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LESSON 8-1

In a Word Document, SaveAS: Chapter8-1AYUYourNameAnd drop in my Inbox today!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Complete the following assignments for Complete the following assignments for Chapter 8-1 todayChapter 8-1 today

Define Terms Review on page 228. Answer Audit Your Understanding questions on page

228. Complete Work Together 8-1 on Aplia – page 228. Complete On Your Own 8-1 on Aplia – page 228. Complete Application Problem 8-1 on Aplia – page

251. Complete Application Problem 8-2 on Aplia – page

251.

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LESSON 8-1