Question

Assume that the Accumulated Depreciation account has an unadjusted normal balance of $120,000. The company's list of adjusting entries includes one that debits Depreciation Expense and credits the Accumulated Depreciation account for $20,000. The adjusted balance in the Accumulated Depreciation account is a:

Answer 1

Answer:

$140,000

Explanation:

The computation of adjusted balance in the Accumulated Depreciation account is shown below:-

adjusted balance in the Accumulated Depreciation account = unadjusted normal balance + Credit Accumulated Depreciation account

= $120,000 + $20,000

= $140,000

Hence the adjusted balance in the Accumulated Depreciation account is $140,000.