Question

At December 31, 2017, before any year-end adjustments, Dallis Company's Prepaid Insurance account had a balance of $5,800. It was determined that $2,600 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expenses for the year would be:
A. $2,600

Answer 1

Answer:

$2,600

Explanation:

Given:

Prepaid Insurance account balance = $5,800

Prepaid insurance expired = $2,600

Insurance Expenses = ?

Computation of Insurance Expenses:

Given that Prepaid Insurance has expired So, the insurance premium is the Insurance Expenses for the year 2017.

Therefore, option "A" is the correct option of the following.