CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 18-1LESSON 18-1

Buying Plant Assets and Paying Property Tax

CENTURY 21 ACCOUNTING © Thomson/South-Western

2

LESSON 18-1

RECORDING THE BUYING OF A RECORDING THE BUYING OF A PLANT ASSETPLANT ASSET

11 2233

page 535

January 3, 20X1. Paid cash for a display case, $3,250.00. Check No. 4.

3. Cash paid

44

2. Cost of the plant asset

1. Account title

4. Post

CENTURY 21 ACCOUNTING © Thomson/South-Western

3

LESSON 18-1

CALCULATING AND PAYING CALCULATING AND PAYING PROPERTY TAXPROPERTY TAX page 536

February 1. Classic Parts, Inc., paid cash for property tax, $720.00. Check No. 69.

AnnualProperty Tax

=Tax Rate×Assessed

Value

$720.00=1.2%×$60,000.00

CENTURY 21 ACCOUNTING © Thomson/South-Western

4

LESSON 18-1

TERMS REVIEWTERMS REVIEW

real property personal property assessed value

page 537