The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $220. After determining depreciation expense is $125, the adjusted balance in the Accumulated Depreciation account for the computer will be a:
A)$125 debit.
B)$220 credit.
C)$345 credit.
D)$95 debit.

Question

Quizplus · Accepted Answer

The adjusted balance in the Accumulated Depreciation account can be calculated as follows:

Adjusted balance = Unadjusted balance + Depreciation expense 
Adjusted balance = $220 (credit balance) + $125 (debit balance) 
Adjusted balance = $345 (credit balance)

Therefore, the correct answer is option C, which is $345 credit.

The Unadjusted Trial Balance Shows Accumulated Depreciation-Computer with a Credit