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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 a. The Supplies account has a $320 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $120 of supplies remaining. Supplies 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 10 step 2 Supplies expense Supplies b. The Supplies account has an $850 debit balance to start the year. Supplies of $2,200 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $675 of supplies remaining. Supplies 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 Supplies expense Supplies c. The Supplies account has a 54,100 debit balance to start the year. During the current year, supplies of $9.600 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2.720. Step 1: Determine what the current account balance equals Supplies 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 Supplies expense Supplies 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 step 2. Assume no other adjusting entries are made during the year. a. The Krug Company's Accumulated Depreciation account has a $19,000 balance to start the year. A review of depreciation schedules reveals that $21.200 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 Depreciation expense Accumulated depreciation b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $55,000, had an estimated life of 5 years, and is expected to have zero value at the end of the 5 years. Accumulated depreciation -Truck 0 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 Depreciation expense--Truck Accumulated depreciation-Truck c. The company has only one fixed asset (equipment) that it purchased at the start of this year. That asset had cost $54.000, had an estimated life of 7 years, and is expected to be valued at $10,600 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 Depreciation expense-Equipment Accumulated depreciation-Equipment a. Tao Co. receives $10,800 cash in advance for four months of evenly planned legal services beginning on October 1. Tao records it by debiting Cash and crediting Unearned Revenue both for $10,800. It is now December 31, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31? Unearned revenue 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 Uneamed revenue Legal services revenue b. Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assume no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Unearned subscription revenue 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 Unearned subscription revenue Subscription revenue