Introduction to Adjusting Journal Entries and Prepaid Expenses Video Lessons

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Problem: Prepaid insurance shows a beginning balance of $900 and an ending balance of $600. During the year, prepaid insurance was debited for $2,500. What is the amount of insurance expense shown on the current year’s income statement? a) $3,400 b) $2,200 c) $2,800 d) $1,600 e) $1,900

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Problem Details

Prepaid insurance shows a beginning balance of $900 and an ending balance of $600. During the year, prepaid insurance was debited for $2,500. What is the amount of insurance expense shown on the current year’s income statement?

a) $3,400

b) $2,200

c) $2,800

d) $1,600

e) $1,900

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Based on our data, we think this problem is relevant for Professor Scarinci's class at STATEN ISLAND CUNY.