The unadjusted trial balance for Prepaid Insurance shows a $1,350 balance.$500 of the balance was unexpired at year's end.On the adjusted trial balance,the balance for Prepaid Insurance is a:
A)$500 debit.
B)$500 credit.
C)$850 debit.
D)$850 credit.

Question

Quizplus · Accepted Answer

The unexpired portion of Prepaid Insurance at year's end is $500, which means this is the amount that remains as an asset. Therefore, the adjusted trial balance will show a $500 debit for Prepaid Insurance.

The Unadjusted Trial Balance for Prepaid Insurance Shows a $1,350