PROBLEM #2 Let's see how sharp you guys are!! On January 1st of year 1, the company bought some equipment that cost $10,000. It has a 10 year estimated life and will therefore be depreciated at the rate of $1,000 per year. What would be the balances in each of the three accounts given.... Equipment Accumulated Depreciation Depreciation Expense Year 1: a) Before both adjusting and closing entries b) After adjusting, but before closing entries c) After both adjusting and closing entries Year 2: a) Before both adjusting and closing entries b) After adjusting, but before closing entries c) After both adjusting and closing entries b) After adjusting, but before closing entries 68 69 70 71 72 73 c) After both adjusting and closing entries 74 Year 2: a) Before both adjusting and closing entries 75 76 77 78 79 80 81 82 83 b) After adjusting, but before closing entries c) After both adjusting and closing entries 84 B5 86 87 88 89 90 91 Year 3 a) Before both adjusting and closing entries b) After adjusting, but before closing entries 92 c) After both adjusting and closing entries 93 94