On a worksheet, the Accumulated Depreciation account has a balance of $50 000 on the trial balance. An adjustment is made to increase Depreciation Expense by $5 000. The balance of Accumulated Depreciation in the adjusted trial balance is:
A)a credit balance of $55 000.
B)a debit balance of $45 000.
C)a credit balance of $45 000.
D)a debit balance of $55 000.

Question

Quizplus · Accepted Answer

Since the adjustment increases Depreciation Expense by $5,000, the balance of Accumulated Depreciation must also increase by the same amount. This means the balance of Accumulated Depreciation in the adjusted trial balance will be $55,000 (original balance of $50,000 + $5,000 adjustment), which is a credit balance. Therefore, the correct answer is (A) a credit balance of $55,000.

On a Worksheet, the Accumulated Depreciation Account Has a Balance