PLANT ASSETS AND DEPRECIATION THS ROOM 8 UNIT LESSON PLAN Mr.

Hartung, Teacher

Course Name "ra#e Content Area Ac+u!s!t!on Le,e) Est!mate# Sess!ons

Account!ng I $%&$' De(rec!at!on, ")encoe Account!ng, Cha(ter '* ESL to Ear)- A#,ance# 8 . /0 m!nutes1sess!on

LESSON O2ER2IE3
Th!s )esson !ntro#uces account!ng stu#ents to account!ng 4or assets use# !n more than one account!ng (er!o#. P)ant assets are somet!mes ca))e# )ong&)!,e# assets 5ecause the!r use4u) )!4e !s more than one -ear.

CONTENT O67ECTI2ES8WHAT YOU WILL LEARN:

I#ent!4- ()an assets E9()a!n the nee# to #e(rec!ate ()ant assets Ca)cu)ate annua) #e(rec!at!on o4 ()ant assets Ca)cu)ate (art!a)&-ear #e(rec!at!on o4 ()ant assets Determ!ne the 5oo: ,a)ue o4 a ()ant asset Recor# #e(rec!at!on o4 ()ant assets Use E9ce) to (re(are #e(rec!at!on sche#u)es

LAN"UA"E O67ECTI2ES
Stu#ents ;!)) 5u!)# u(on (re,!ous content ,oca5u)ar- an# a(()- account!ng :no;)e#ge1ru)es to the content o5<ect!,es us!ng E9ce). Stu#ents shou)# (re(are to )earn an# s(e)) the 4o))o;!ng Accumu)ate# #e(rec!at!on 6oo: ,a)ue $

PLANT ASSETS AND DEPRECIATION De(rec!at!on D!s(osa) ,a)ue P)ant assets Stra!ght&)!ne #e(rec!at!on Pett- Cash Re+u!s!t!on

RESOURCES
6u!)# E9ce) ;or:5oo: that !nc)u#es a genera) <ourna), ()ant asset recor#, #e(rec!at!on sche#u)e. 2oca5u)ar- )!st!ng ;!th #e4!n!t!ons an# #!scuss!on.

INTO
Com()ete a stu#ent note gu!#e 4rom the 4o))o;!ng !n4ormat!on. 6us!nesses o;n man- #!44erent t-(es o4 assets. One categor- o4 asset re+u!res s(ec!a) treatment I the account!ng recor#s. These are assets that are e9(ecte# to (ro#uce 5ene4!ts 4or the 5us!ness 4or more than one -ear. The- are (urchase# 4or use !n o(erat!ng the 5us!ness, not 4or resa)e. Re,!e; current an# ()ant assets to #!st!ngu!sh )ong&)!,e# assets. Current assets !nc)u#e cash, accounts rece!,a5)e, an# merchan#!se 4or sa)e. P)ant assets !nc)u#e )an#, 5u!)#!ngs, #e)!,er- e+u!(ment store e+u!(ment, an# o44!ce e+u!(ment. 6ecause ()ant assets are use# o,er se,era) account!ng (er!o#s, the cost o4 these assets !s s(rea# o,er, or a))ocate# to, the (er!o#s !n ;h!ch the asset ;!)) 5e use# to (ro#uce re,enue. The (rocess o4 #o!ng th!s !s ca))e# #e(rec!at!on. Lan# !s not #e(rec!ate# 5ecause !t !s cons!#ere# to ha,e un)!m!te# )!4e. It !s !m(ortant to :no; that #e(rec!at!on !s an est!mate. It !s #!44!cu)t to (re#!ct the e9act use4u) )!4e or the #!s(osa) ,a)ue o4 an asset. "o to !rs.go, an# go through the #e(rec!at!on o,er,!e;. =our 4actors are use# to ca)cu)ate #e(rec!at!on o4 a ()ant asset !ts cost, !ts est!mate# use4u) )!4e, !ts est!mate# #!s(osa) ,a)ue, the #e(rec!at!on metho# use#. The cost o4 a ()ant asset !s the (r!ce the 5us!ness (a!# to (urchase# !t ()us an- sa)es ta9, #e)!,er- charges, an# !nsta))at!on charges. The est!mate# use4u) )!4e o4 a ()ant asset !s the num5er o4 -ears !t !s e9(ecte# to 5e use# 5e4ore !t ;ears out, 5ecomes out#ate#, or !s no )onger nee#e# 5- the 5us!ness. The #!s(osa) ,a)ue !s the est!mate# amount that the asset ;!)) 5e ;orth at the t!me o4 !ts re()acement. '

PLANT ASSETS AND DEPRECIATION 6u!)# an E9ce) ;or:sheet to com()ete (ro5)em '*&$ on (age >?*.

THROU"H

Create E9ce) ;or:5oo: cons!st!ng o4 a (ett- cash reg!ster, genera) <ourna), (ett- cash reconc!)!at!on, an# mu)t!()e (ett- cash ,ouchers8$0 tota) ,ouchers. Stu#ents ;!)) com()ete th!s through gu!#e# (ract!ce an# !n#e(en#ent ;or:. A teacher&(ro,!#e# tem()ate !s (ro,!#e# an# #emonstrate#. Sa,e the ;or:5oo: as Petty Cash Fund Workbook Template "u!#e# Pract!ce Com()ete 6us!ness Transact!on, Page >/?, 4or esta5)!sh!ng a Pett- Cash =un# us!ng the E9ce) ;or:5oo:. Stu#ents ;!)) rename the E9ce) tem()ate Petty Cash Practice Transactions. E,a)uat!on through teacher re,!e; o4 on&screen #ocuments. 3hene,er a (ett- cash (a-ment !s ma#e, a (ett- cash ,oucher !s com()ete# an# ser,es as (roo4 o4 (a-ment. "u!#e# Pract!ce C)ass ass!gns Pett- Cash!er, chec: !s ;r!tten, amount ()ace# !n PettCash 6o9. Each stu#ent com()etes a ,oucher 4or an- amount not to e9cee# @0.%%. Ass!gn each stu#ent a ,oucher num5er. Choose an- (ro#uct re)ate# to su(()!es, #e)!,er, m!sc, or genera). 2ouchers su5m!tte# to Cash!er. Cash!er g!,es mone- to the stu#ents. Ha,e stu#ent ,o)unteers come 4or;ar# to com()ete the PC Reg!ster on c)ass com(uter ;h!)e stu#ents com()ete reg!ster at the!r com(uter. 2er!4- tota)s an# e+ua)!t- at 5ottom o4 reg!ster. A)) stu#ents com(are tota)s an# sho; to teacher. Reconc!)e the cash 4un# us!ng the E9ce) tem()ate. Re4er to (age >/A an# to the E9ce) tem()ate 4or gu!#ance. Com()ete the E9ce) Pett- Cash Re+u!s!t!on us!ng the !n4ormat!on 4rom the reg!ster. Ma:e <ourna) entr!es us!ng the re+u!s!t!on as source #ocument. Re4er to Reconc!)!at!on 4or an- Cash Short B O,er. 3r!te a chec: to re()en!sh the Pett- Cash =un#. "u!#e# Pract!ce Pract!ce us!ng the ,ouchers an# reconc!)!at!on as sho;n on (age >/A. Ma:e a#<ustments as re+u!re#. E,a)uat!on through teacher re,!e; o4 on&screen #ocuments. "u!#e# Pract!ce Re4er to the (ett- cash re+u!s!t!on on (age >0%. Enter these amounts !n the E9ce) ;or:sheet Petty Cash Practice Transactions. A (ett- cash reg!ster !s a su(()ementa) recor# that summar!Ces the t-(es o4 (ett- cash #!s5ursements. It !s not an account!ng <ourna).

PLANT ASSETS AND DEPRECIATION "u!#e# Pract!ce Re4er to the (ett- cash reg!ster on (age >0$. Enter these amounts !nto the E9ce) ;or:sheet Petty Cash Practice Transactions. 2er!4- that co)umn tota)s a## (ro(er)-.

In#e(en#ent Pract!ce Pro5)em ''&0, (age >>%D Esta5)!sh!ng an# Re()en!sh!ng a PettCash =un#. Sa,e 3or:5oo: as Pro5)em ''&0. Sho; com()ete# #ocuments to teacher. In#e(en#ent Pract!ce Pro5)em ''&>, (age >>$D Esta5)!sh!ng an# Re()en!sh!ng a PettCash =un#. Sa,e ;or:5oo: as Pro5)em ''&>. At ste( *, use the E9ce) Pett- Cash Reg!ster. A## Ste( /.0 to com()ete a Pett- Cash Reconc!)!at!on us!ng E9ce) #oc. Sho; com()ete# #ocuments to teacher. In#e(en#ent Pract!ce Pro5)em ''&?, (age >>'D Us!ng a Pett- Cash Reg!ster.

6EEOND
Com()ete Chec: Eour Un#erstan#!ng, (age >08D *, /, 0, > B ?. Pract!ce #e4!n!ng an# s(e))!ng content ,oca5u)ar-. Re4er to han#out an# notes 4rom Da- *. Fu!C, Us!ng a Change =un# an# E9ce) a(()!cat!ons. S(e))!ng test. Cr!t!ca) Th!n:!ng, (age >>>D $, *, B /. 3r!t!ng Su((ort B Matter o4 Eth!cs, (age >>>D 6orro;!ng 4rom the Pett- Cash =un#. C'' Pett- Cash E9am.