Chapter 3: Adjusting Entries Accumulated de reci ton adjustments, adjusting the accumulated hap Supplement Worksheet QS 3-8 For each separate case below, follow the three st account On depreciation account at December 31. Step 1: Determine what the current account ance 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. Asume no other adjusting entries are made during the year. a) Accumulated Depreciation. The Krug Company's Accumulated Depreciation account has a $13,500 balance to start the year. A review of depreciation schedules reveals that $14,600 of depreciation expense must be recorded for the year. Accumulated Depreciation. The company has only one fixed asset (eruck) 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. b) Accumulated Depreciation. 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. c) Adjusting for depreciation - Qs 3-9 a) Barga Company purchases $20,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth $2,000 at the end of that time. Prepare the entry to record one year's depreciation expense of $3,600 for the equipment as of December 31, 2017