Question

At December 31, 2017, before any year-end adjustments, Macarty Company's Prepaid Insurance account had a balance of $2,700. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be:____________a) $1,200.b) $2,700.c) $1,900.d) $1,500.

Answer 1

$1,500

Step-by-step explanation:

Macarty company prepaid insurance account had a balance of $2700

It was determined that $1500 of the prepaid insurance had expired

Therefore the adjusted balance for insurance for the year is $1500