In the unadjusted trial balance of its worksheet for the year ended December 31, 2022, Knox Company
Question:
In the unadjusted trial balance of its worksheet for the year ended December 31, 2022, Knox Company reported Equipment of $120,000. The year-end adjusting entries require an adjustment of $15,000 for depreciation expense for the equipment. After the adjusted trial balance is completed, what amount should be shown in the financial statement columns?
a. A debit of $105,000 for Equipment in the balance sheet column.
b. A credit of $15,000 for Depreciation Expense in the income statement column.
c. A debit of $120,000 for Equipment in the balance sheet column.
d. A debit of $15,000 for Accumulated Depreciation- Equipment in the balance sheet column.
Step by Step Answer:
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell