At the beginning of the year, it had a balance in its prepaid insurance account of $48,400. During the year, $86,000 was paid for insurance. At the end of the year, after adjusting entries were recorded, the balance in prepaid insurance account was $42,000. Indurancr expense for the year would be: A. $92,400 B. $6,400 C. $134,400 D. $86,000

At the beginning of the year, it had a balance in its prepaid insurance account of $48,400. During the year, $86,000 was paid for insurance. At the end of the year, after adjusting entries were recorded, the balance in prepaid insurance account was $42,000. Indurancr expense for the year would be: A. $92,400 B. $6,400 C. $134,400 D. $86,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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