At December 31, 2015, before any year-end adjustments, Harvest Inc.'s Prepaid Insurance account had a balance of $2,000.It was determined that $800 of the Prepaid Insurance had expired.The adjusted balance for Prepaid Insurance at year end would be

Question

Quizplus · Accepted Answer

The $800 that had expired needs to be deducted from the original balance of $2,000 to get the adjusted balance of $1,200 ($2,000 - $800 = $1,200). Therefore, the correct answer is B.

At December 31, 2015, Before Any Year-End Adjustments, Harvest Inc