The December 31,2014 worksheet for Albertville Grill showed the following amounts related to the Depreciation Expense account: (a).In the Trial Balance debit column: $1,745
(b))In the Adjustments debit column: $1,125
(c))In the Adjusted Trial Balance debit column: $1,870
What is the proper balance in the Depreciation Expense account on January 1,2015,after all closing entries for 2014 have been posted,but before any 2015 transactions are recorded?

Question

Quizplus · Accepted Answer

The proper balance in the Depreciation Expense account on January 1, 2015, after all closing entries for 2014 have been posted, but before any 2015 transactions are recorded is $0. This is because Depreciation Expense is a temporary account that is closed out at the end of each accounting period. The adjusted balance of $1,870 in the Adjusted Trial Balance debit column represents the total depreciation expense for the year 2014, which was closed out to the Retained Earnings account. The balance in the Depreciation Expense account for the new year 2015 will begin at $0.

The December 31,2014 Worksheet for Albertville Grill Showed the Following