a. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $20,500 balance to start the year. A review of depreciation schedules reveals that $23,000 of depreciation expense must be recorded for the year. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Depreciation expense Accumulated depreciation Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. $ 20,500 Step 1: Determine what the current account balance equals. $ 23,000 Credit $ 3,500 x Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit $ 3,974 Debit or Credit? Credit b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $58,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. The company uses straight line depreciation method to calculate its depreciation. 0 Step 2: Determine what the current account balance should equal Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Credit Debit or Credit? Debit 3,500 x Credit Accumulated depreciation X 20,500 3,500 23,000 Accumulated depreciation-Truck 3,974 c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $60,000, had an estimated life of seven years, and is expected to be valued at $12,400 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. Accumulated depreciation- Equipment 0

a. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $20,500 balance to start the year. A review of depreciation schedules reveals that $23,000 of depreciation expense must be recorded for the year. Step 3: Record the December 31 adjusting entry to got from step 1 to step 2 b. Accumulated Depreclation: The company has only one plant assot (truck) that it purchased at the start of this yoar. That asset had cost $58,000, had an estimated life of five years, and is expected to have zero value at the ond of the five yosrs. The company uses straight line depreciation method to calculato its depreciation. Stop 1 Determine what the current acoount balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Adjusting Entry Dabit Credit c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $60,000, had an estimated flfo of seven years, and is expected to be valued at $12,400 at the end of the oeven years. The coenpary uses atral ght line depreciation method to calculate its depreciation. Step 1 Determine what the current account balance equais. Step 2 . Determine what the current account balance shordd equal. Step 3. Record the Decomber 31 adjusting entry to get from step 1 to slep 2