Lesson 1: Introduction to Plant Assets
Duration of Days: 4
Lesson Objective
Students will identify and classify plant assets, record the purchase of plant assets, and calculate and journalize straight-line depreciation while analyzing the financial impact on business operations.
What qualifies as a plant asset?
Why are plant assets recorded differently than supplies or inventory?
What is depreciation actually measuring?
How does depreciation affect the financial statements
Plant Assets
Long-Term Assets
Depreciation
Straight-Line Method
Salvage Value
Useful Life
Book Value
Accumulated Depreciation
Historical Cost
B. Accounting Principles: Identify and describe GAAP principles and explain their impact on recording and financial reporting.
C. Accounting Process: Complete steps of the accounting cycle and analyze financial statement impact.
Analyze and describe how business transactions impact the accounting equation.
Students apply multi-step mathematical reasoning and interpret quantitative information within word problems, strengthening applied math and analytical reading skills.
Description: students to plant assets and their role in business operations. Students learn to identify and classify plant assets, distinguish them from current assets, and understand why long-term assets are recorded differently than expenses.
The purpose of this lesson is to help students understand how businesses account for long-term assets and allocate their cost over time through depreciation. Students will learn how plant assets affect financial statements and why proper recording of these assets is important for accurate reporting.
DOK Level Questions
Level 1
Define plant asset.
Define depreciation.
Students examine companies that rely heavily on physical assets such as UPS and McDonald's Corporation and consider how delivery trucks, buildings, and equipment are recorded and depreciated.
Students may think depreciation represents loss of market value.
Step-by-step modeling of formula
Color-coded accounting equation tracking
Guided practice before independent work
Visual timeline of asset life
Excel calculation template for support
Small group reteaching as needed
Guided Notes
Depreciation Worksheet
Journal Entry Practice
Exit Ticket explaining financial statement impact
Short quiz on terminology and calculations
Century 21, Accounting General Journal, 11th edition
MindTap working papers
Class notes
Purchasing Plant Asset worksheet
Do Now and Exit Tickets