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.

a. The krug company's accumulated depreciation account has a $15,000 balance to start the year. A review of depreciarion schedules reveals that $16,400 od depreciation expense must be recorded for the year.

Step 1. Determine what the current account balance equals. Debit or credit

Step 2. Determine what the current account balance should equal. Debit or credit

Step 3. Record an adjusting entry to get from step 1 or step 2.

Adjustine entry (Pick one for debit and credit )

Accumulated depreciation Debit Credit

Depreciation expense Amount( ) ( )

Equipment

Insurance expense

Prepaid ensurance

Prepaid rent

Rent expense

Supplies

Supplies expense