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. The Krug Company's Accumulated Depreciation account has a $20,500 balance to start the year. A reviow of depreciation schedules reveals that $23,000 of depreciation expense must be recorded for the year. Debitor Credit? Accumulated depreciation Step 1: Determine what the current account balance equals. 20,500 Debit 20,500 23,000 Step 2 Determine what the current account balance should equal. $ 43,500 Debit 43,500 Debit Credit Step 3: Record the December 31 adjusting entry to get from step 1 to stop 2 Adjusting Entry Depreciation expense 23,000 Accumulated depreciation 23,000 b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $58,000, had an estimated life of 5 years, and is expected to have zero value at the end of the 5 years. Accumulated depreciation -Truck Ston1 Determine what the current account balance equals Step 2. Determine what the current account balance should equal b. The company has only one fixed asset truck) that it purchased at the start of this year. That asset had cost 558,000, had an estimated life of 5 years, and is expected to have zero value at the end of the years. Accumulated depreciation -Truck Step 1 Determine what the current account balance equals 0 Step 2. Determine what the current account balance should equal Step 3 Record the December 31 adjusting entry to get from step to step 2 . The company has only one fixed asset equipment that it purchased at the start of this year. That asset had cost $60,000, had an estimated life of 7 years, and is expected to be valued at $12.400 at the end of the 7 years Sep 1: Determine what the current account balance equal Accumulated depreciation -Equipment Step 2. Damine what the current account balance should SM Record the December 31 austing entry to get from the top 2 s co .8 D $ o % 2 A 3 & 4 5 7 8 9 O W E R T T Y U 0 S D F G H . J K L