The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $190.After determining depreciation expense is $45,the adjusted balance in the Accumulated Depreciation account for the computer will be a:
A)$45 debit.
B)$190 credit.
C)$235 credit.
D)$145 debit.

Question

Quizplus · Accepted Answer

The unadjusted trial balance shows a credit balance of $190 in the Accumulated Depreciation-Computer account. After determining the depreciation expense is $45, we need to adjust the balance in the account.

Accumulated Depreciation is a contra asset account, which means it has a credit balance that is used to reduce the value of the related asset (in this case, the computer). To adjust the balance, we need to increase it by the amount of depreciation expense.

Therefore, we need to add $45 to the credit balance of $190, to get a new adjusted balance of $235. The correct answer is option C, $235 credit.

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