Assume Idaho Company recorded the following adjusting journal entry at year-end: If the beginning balance in prepaid insurance was $500, and $2,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?
$$\begin{array} { | c | r | r | }
\hline \text { Insurance expense } & \$ 2,000 & \
\hline \text { Prepaid insurance } & & \$ 2,000 \
\hline
\end{array}$$

Question

Assume Idaho Company recorded the following adjusting journal entry at year-end: If the beginning balance in prepaid insurance was $500, and $2,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?
$$\begin{array} { | c | r | r | } 
\hline \text { Insurance expense } & \$ 2,000 & \
\hline \text { Prepaid insurance } & & \$ 2,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Assume Idaho Company recorded the following adjusting journal entry at year-end: If the beginning balance in prepaid insurance was $500, and $2,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?
$$\begin{array} { | c | r | r | } 
\hline \text { Insurance expense } & \$ 2,000 & \
\hline \text { Prepaid insurance } & & \$ 2,000 \
\hline
\end{array}$$

Assume Idaho Company Recorded the Following Adjusting Journal Entry at Year-End