If the prepaid rent account had an unadjusted normal balance of $13,400, and an adjustment was made crediting the account for $1,800, then the account would appear on the worksheet as a(n):
A)$11,600 debit balance in the balance sheet columns.
B)$1,800 credit balance in the income statement columns.
C)$11,600 credit balance in the adjusted trial balance columns.
D)$1,800 credit balance in the balance sheet columns.

Question

Quizplus · Accepted Answer

The adjustment reduces the prepaid rent account by $1,800, resulting in a new balance of $11,600 ($13,400 - $1,800). Prepaid rent is an asset account, so it would appear as a debit balance in the balance sheet columns.

If the Prepaid Rent Account Had an Unadjusted Normal Balance