b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $44,000, had an estimated life of five years, and is expected to have zero value at the end of the five years Accumulated depreciation -Truck DR or CR? Step 1: Determine what the current account balance equals 44,000 Debit or Credit? 8,799 Step 2: Determine what the current account balance should equal 35,201 35,201 Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Credit Depreciation expense-Truck 8,799 Accumulated depreciation Truck 8,799 c. The company has only one fixed asset (equipment) that it purchased at the start of this year. That asset had cost $32,000, had an estimated life of seven years, and is expected to be valued at $4,000 at the end of the seven years Accumulated depreciation -Equipment Step 1: Determine what the current account balance equals 28,000 Debit or Credit? 3,996 Step 2: Determine what the current account balance should equal 24,004 24,004 Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Adjusting Entry Debit Credit Depreciation expense-Equipment 3,996 Accumulated depreciation-Equipment 3,996