For each separate case below, follow the three-step process for adjusting the accumulated depreciation account at December 31. 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 step2. Assume no other adjusting entries are made during the year a. Accumulated Depreciation. The Krug Company's Accumulated Depreciation account has a $17,500 balance to start the year. A review of depreciation schedules reveals that $19,400 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