The unadjusted trial balance shows a $1,080 balance for Depreciation Expense. Depreciation of $235 was recorded for the period. The adjusted trial balance figure for Depreciation Expense is now a:
A)$845 debit.
B)$845 credit.
C)$1,315 debit.
D)$1,315 credit.

Question

Quizplus · Accepted Answer

The unadjusted trial balance showed a balance of $1,080 for Depreciation Expense, which means that $1,080 worth of Depreciation Expense had been recorded in previous periods. In the current period, $235 worth of additional Depreciation Expense was recorded. To adjust the trial balance, we need to subtract the $235 of Depreciation Expense recorded in the current period from the unadjusted balance of $1,080 to get an adjusted balance of $845. However, since the unadjusted balance was a debit (an expense), we need to keep the adjusted balance as a debit. Therefore, the adjusted trial balance figure for Depreciation Expense is $845 debit (Option C).

The Unadjusted Trial Balance Shows a $1,080 Balance for Depreciation