1. LESSON 14-5
Planning and Recording
Depreciation Adjustments
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
CALCULATING DEPRECIATION EXPENSE
page 424
AND BOOK VALUE (continued on next slide)
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.
Original
Cost
–
Estimated
Salvage
Value
=
Estimated Total
Depreciation
Expense
$1,250.00
–
$250.00
=
$1,000.00
Estimated Total
Depreciation
Expense
÷
Years of
Estimated
Useful Life
=
$1,000.00
÷
5
=
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
1
Annual
Depreciation
Expense
$200.00 2
LESSON 14-5

3. 3
CALCULATING DEPRECIATION EXPENSE
AND BOOK VALUE (continued from previous slide) page 424
20X2
Accumulated
Depreciation
20X3
+ Depreciation =
Expense
$400.00
+
Original Cost
–
$1,250.00
–
$200.00
=
Accumulated
=
Depreciation
$600.00
=
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
20X3
Accumulated
Depreciation
$600.00
Ending
Book Value
$650.00
LESSON 14-5

4. 4
ANALYZING AND RECORDING ADJUSTMENTS
FOR DEPRECIATION EXPENSE
page 425
3
2
3
1
1. Write the debit amounts.
2. Write the credit amounts.
3. Label the adjustments.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-5

5. 5
TERMS REVIEW







page 426
current assets
plant assets
depreciation expense
estimated salvage value
straight-line method of depreciation
accumulated depreciation
book value of a plant asset
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-5

6. 5
TERMS REVIEW







page 426
current assets
plant assets
depreciation expense
estimated salvage value
straight-line method of depreciation
accumulated depreciation
book value of a plant asset
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-5