Final answer:
To adjust the accumulated depreciation account, first sum up the Exports, Imports, and Balance columns to find the current account balance. Then, determine what the balance should be based on calculated depreciation, and finally, make an adjusting entry to reflect the accurate accumulated depreciation.
Step-by-step explanation:
The question involves a three-step process for adjusting the accumulated depreciation account at year-end. To address the student's question, here is how one would complete this task:
Determine what the current account balance equals. This is done by summing up the columns for Exports, Imports, and Balance as directed in Step 10. The final balance number is your current account balance.
Determine what the current account balance should equal. This can involve calculating the expected depreciation over the period based on the method of depreciation used (straight-line, double-declining balance, etc.).
Record the December 31st adjusting entry to get from the current balance to the correct balance. This involves debiting depreciation expense and crediting accumulated depreciation for the difference between the two balances.
It is critical to ensure accurate bookkeeping for financial statements, as accumulated depreciation impacts both the balance sheet and the income statement.