a. The Krug Company's Accumulated Depreciation account has a $20,000 balance to start the year. A review of depreciation schedules reveals that $22,400 of depreciation expense must be recorded for the year. Accumulated depreciation Step 1: Determine what the current account 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. b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $57,000, had an estimated life of 5 years, and is expected to have zero value at the end of the 5 years, Accumulated depreciation -Truck Step 1: Determine what the current account 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 c. The company has only one fixed asset (equipment that it purchased at the start of this year. That asset had cost $68,000, had an estimated life of 7 years, and is expected to be valued at $11,800 at the end of the 7 years c. The company has only one fixed asset (equipment) that it purchased at the start of this year. That asset had cost $58,000, had an estimated life of 7 years, and is expected to be valued at $11,800 at the end of the 7 years. Accumulated depreciation ---Equipment Step 1: Determine what the current account 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 a. The Krug Company's Accumulated Depreciation account has a $20,000 balance to start the year. A review of depreciation schedules reveals that $22,400 of depreciation expense must be recorded for the year. Accumulated depreciation Step 1: Determine what the current account 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. b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $57,000, had an estimated life of 5 years, and is expected to have zero value at the end of the 5 years, Accumulated depreciation -Truck Step 1: Determine what the current account 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 c. The company has only one fixed asset (equipment that it purchased at the start of this year. That asset had cost $68,000, had an estimated life of 7 years, and is expected to be valued at $11,800 at the end of the 7 years c. The company has only one fixed asset (equipment) that it purchased at the start of this year. That asset had cost $58,000, had an estimated life of 7 years, and is expected to be valued at $11,800 at the end of the 7 years. Accumulated depreciation ---Equipment Step 1: Determine what the current account 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
