At December 31, 2012, 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

Quizplus · Accepted Answer

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, 2012, Before Any Year-End Adjustments, Ubanigi Corp's