Question

a. 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.

Answer 1

Accumulated depreciation

a. Step 1: Determine what the current account balance equals $17500 credit 36900 (17500+19400)

Step 2: Determine what the current account balance should equal $36900 credit

Step 3:Adusting Entry:

Debit Credit

Depreciation Epense   19400

Accumulated Depreciation 19400

      Accumulated depreciation(Truck)

b. Step 1: Determine what the current account balance equals $0 0

10400

Step 2:Determine what the current account balance should equal $10400 credit    10400

  Step 3:Adusting Entry:   

Debit Credit

Depreciation Expense-Truck 10400

Accumulated Depreciation-Truck 10400

Accumulated Depreciation 52000/5=10400

  Accumulated depreciation(equipment)

c. Step 1: Determine what the current account balance equals $0 0

5600

Step 2:Determine what the current account balance should equal $5600 credit    5600

  Step 3:Adusting Entry:   

Debit Credit

   Depreciation Expense-equipment 5600

Accumulated Depreciation-equipment 5600

Depreciation=(48000-8800)/7=5600