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. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $23,000 balance to start the year. A review of depreciation schedules reveals that $26,000 of depreciation expense must be recorded for the year. 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 Credit Credit Accumulated depreciation b. Accumulated Depreciation: The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $63,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. 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 Credit Accumulated depreciation -Truck 0