Question

For each separate case below, follow the 3-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.

Chrome File Edit View History Bookmarks People Window Help M Chapter 3 New Tab C ezto.mheducation.co m/hm.tpx ACCOUNTING Chapter 3 Question 3 (of3) For each separate case below, follow the 3-step process for adjusting the accumulated depreciation account at December 3 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. The Krug Company's Accumulated Depreciation account has a $13,500 balance to start the year. A review of depreciation schedules reveals that $14,600 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. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $44,000, had an estimated life of five years, and is expected to have zero value at the end of the five years 442 t FEB 4896 D Thu 4:21 PM a E instructions I help Ea Save & Exit Submit

Answer 1

3a)						Accumulated depreciation
Step 1	current account balance equals				13,500		13,500
Step 2	current account balance should be				28100		14,600
							28,100
Step 3	Adjusting entry
	Depreciation expense			14,600
	Accumulated depreciation				14,600
b)						Accumulated dep-truck
Step 1	current account balance equals				0		0
Step 2	current account balance should be				35200		8,800
							8,800
Step 3	Adjusting entry
	Depreciation expense			8,800
	Accumulated depreciation				8,800
	(44000/5)
c)						Accumulated dep-Equipment
Step 1	current account balance equals				0		0
Step 2	current account balance should be				4,000		4,000
							4,000
Step 3	Adjusting entry
	Depreciation expense			4,000
	Accumulated depreciation				4,000
	(32000-4000)/7