1-3. Prepare an adjusting entry for the year ended December 31, 20X5. - The Ryerson purchased a Tesla Model 3 for $70,000 on July 1, 20X5. The car is expected to have a useful life of five years and a salvage value of $5,000. The Ryerson uses the straight-line method of depreciation; however, no depreciation for the car has been recorded. Accumulated Depreciation $13,000 (Debit) / Depreciation Expense $13,000 (Credit) Accumulated Depreciation $6,500 (Debit) / Depreciation Expense $6,500 (Credit) Depreciation Expense $6,500 (Debit) / Accumulated Depreciation $6,500 (Credit) Depreciation Expense $13,000 (Debit) / Accumulated Depreciation $13,000 (Credit) 1-4. Prepare the adjusting entry to record the proper expanse for 20X3. Below is the 20x3 activities/transactions for Ryerson: - The Ryerson purchased an auto insurance policy for July 1, 20X3, through June 30, 20X4, was purchased on May 15, 20X3. The premium paid totaled $12,000 and was recorded as prepaid insurance. Insurance Expense $12,000 (Debit) / Prepaid Insurance $12,000 (Credit) Prepaid Insurance $12,000 (Debit) / Insurance Expense $12,000 (Credit) Prepaid Insurance $6,000 (Debit) / Insurance Expense $6,000 (Credit) Insurance Expense $6,000 (Debit) / Prepaid Insurance $6,000 (Credit)