For each separate case below, follow 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. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $19,500 balance to start the year.A review of depreciation schedules reveals that $21,800 of depreciation expense must be recorded for the year.Debit or Credit?Accumulated depreciationStep 1: Determine what the current account balance equals.$1 Credit1Step 2: Determine what the current account balance should equal.DebitStep 3: Record the December 31 adjusting entry to get from step 1 to step 2.b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. Thatasset had cost $56,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. Thecompany uses straight line depreciation method to calculate its depreciation.Accumulated depreciation-TruckDebit or Credit?Step 1: Determine what the current account balance equals.1 Accurnulated depreciation-TruckDebit or Credit?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.c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. Thatasset had cost $56,000, had an estimated life of seven years, and is expected to be valued at $11,200 at the end of the sevenyears. The company uses straight line depreciation method to calculate its depreciation.Accumulated depreciation-EquipmentStep 1: Determine what the current account balance equals.Debit or Credit?Step 2: Determine what the current account balance should equal.1Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.Adjusting EntryDebitCredit

Since these are three separate cases ( independent of each other ) , we are allowed to do one of…

For each separate case below, follow 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. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $19,500 balance to start the year. A review of depreciation schedules reveals that $21,800 of depreciation expense must be recorded for the year. Debit or Credit? Accumulated depreciation Step 1: Determine what the current account balance equals. 1 Credit 1 Step 2: Determine what the current account balance should equal. Debit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

For each separate case below, follow 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. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $19,500 balance to start the year. A review of depreciation schedules reveals that $21,800 of depreciation expense must be recorded for the year. Debit or Credit? Accumulated depreciation Step 1: Determine what the current account balance equals. 1 Credit 1 Step 2: Determine what the current account balance should equal. Debit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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