Question

For each separate case below, tollow 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 $17,000 balance to start the year. A review of depreciation schedules reveals that $18,800 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 b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $51,000, 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.

Answer 1

Step 1: Determine What the wrrent acwunt balance equals Step 2: Determine what the current account balance should Step 3: Record the December 31 adjusting entry to get from step to step 2 Depreciation expense Acumulated depreciation $18800 Depreciation Expense - Truck 14. The Krug Company's Accumulated Depreciation de couot has a $17600 balance to start the year. A review of depreciation Schedules reveals that $18.800 of depreciation expense must be recorded for the Yeor Accumulated Delpre cialium |$17000 Credit $17000 $ 18800 $35800 Credit $35 800 Debit Credit |$18800 b. The company has only one fixed assets( truck) that it purchased at the Staut of this year. The Asset had cost $ 51000, had an estimated life of 5 years, and is expected to have zeno value at the end Accumulated depreciation -Truck Step-1: De teumine What the current antone 0 account balance equals 0 $10 200 Step 2: De teu mine what the lument acu unt balance | $10200 credit $10200 should Step 3: Record the December 31 adjusting en try to get from step and step 2 Debit Credit $10 200 $ 10200 of the 5 years. Accumulated Depreciation - Truck

c. The Company has only one fixed assetle qulb ment) that it purchased at the Start of this year. That Asset had cost $46000, had an estimated life of years, and is expected to be valued at $ 8200 at the end of 7 Years. Accumulated Depreciation - Equipment Step 1: Determine what the current account balance equals 0 D $ 5400 Step 2: Detey mine what the current account balance should $5400 Credit $5400 Step 3: Record the December 31 adjusting get from Step I and step2 entry to Debit Credit $ 5400 Depreciatim Expense-Equipment Accumulated Depreciation - Equipment $5400 Notes ). (a) wrrent Account Balance $ 17000 Adet! Depreciation Expense Schedule - $18800 Lurrent Account balance should $35 500 (b) Cost of truck (fixed Asset) $ 51000 ters: $ 6 Salvage value Depricable Amo unt life of Asset 5 Years Depreciation Expense : Depreciable Amount life of Asset = $10200 $S1000 = $ 51000 S

(C). Cost of Equipment (fixed Asset) - $ 46000 less: $ 8200 Depreciable Amount $37800 Salvage Value life of Asset Depreciation Expense 7 years ४ Depriciable Amount $ 3780 0 life of Asset $ 5400