Question

On the end-of-period spreadsheet, Accumulated Depreciation has a balance of $600 in the Unadjusted Trial Balance column and an adjustment of $200 in the Adjustments Credit column. What amount should appear for Accumulated Depreciation in the Adjusted Trial Balance column?

A. A credit of $400
B. A debit of $800
C. A debit of $400
D. A credit of $800

Answer 1

D. A credit of $800

Step-by-step explanation:

The accumulated depreciation is the total depreciation over the years of use of an asset. It usually has a credit balance.

Hence where Accumulated Depreciation has a balance of $600 in the Unadjusted Trial Balance column and an adjustment of $200 in the Adjustments Credit column, the total balance in the Adjusted Trial Balance column is the sum of the two credits

= $600 + $200

= $800 (credit)