At December 31, 2015, before any year-end adjustments, Ubanigi Corp.'s Insurance Expense account had a balance of $725 and its Prepaid Insurance account had a balance of $2,900.It was determined that $1,500 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be

Question

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The adjusted balance for Insurance Expense is calculated by adding the expired portion of Prepaid Insurance ($1,500) to the existing Insurance Expense balance ($725), resulting in $2,225.

At December 31, 2015, Before Any Year-End Adjustments, Ubanigi Corp