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Return to question 2 For each separate case below, follow the three-step process for adjusting the prepaid asset 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 step 2. 0.5 points Assume no other adjusting entries are made during the year. Answer is not complete. a. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $5,100 balance to start the year. A review of depreciation schedules reveals that $1,100 of depreciation expense must be recorded for the year. Debit or Credit? 5,100 Credit Accumulated depreciation 5,100 Step 1: Determine what the current account balance equals. $ Step 2: Determine what the current account balance should equal. Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Depreciation expense Accumulated depreciation b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $6,290, 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. Accumulated depreciationTruck Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Depreciation expense Truck Accumulated depreciationTruck c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $4,000, had an estimated life of seven years, and is expected to be valued at $1,200 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. Accumulated depreciation, Equipment Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Depreciation expense Equipment Accumulated depreciationEquipment Return to question For each separate case below, follow the three-step process for adjusting the Supplies asset 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 step 2. Assume no other adjusting entries are made during the year. > Answer is not complete. a. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $380 balance to start the year. A review of depreciation schedules reveals that $150 of depreciation expense must be recorded for the year. Accumulated depreciation Step 1: Determine what the current account balance equals. Credit Step 2: Determine what the current account balance should equal. Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Depreciation expense Accumulated depreciation b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $1,000, 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. Accumulated depreciationTruck Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Depreciation expense Truck Accumulated depreciationTruck c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $4,400, had an estimated life of seven years, and is expected to be valued at $2,900 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. Accumulated depreciation- Equipment Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Depreciation expense Equipment Accumulated depreciation-Equipment