At December 31, 2022, before any year-end adjustments, TBS Corp.'s Insurance Expense account had a balance of $800 and its Prepaid Insurance account had a balance of $3,400.It was determined that $1,650 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be
A)$2,450.
B)$1,650.
C)$1,975.
D)$ 800.

Question

Quizplus · Accepted Answer

The adjusted balance for Insurance Expense is calculated by adding the expired portion of the Prepaid Insurance ($1,650) to the original Insurance Expense balance ($800), resulting in $2,450.

At December 31, 2022, Before Any Year-End Adjustments, TBS Corp