At the beginning of the year, Prepaid Insurance had a balance of $6,500. At the end of the year the balance in Prepaid Insurance was $7,900. Insurance Expense as reported on the income statement was $49,500. Payments for insurance during the year amounted to:

Question

Quizplus · Accepted Answer

Prepaid Insurance increased by $1,400 ($7,900 - $6,500). Insurance Expense was $49,500. Payments for insurance were $1,400 + $49,500 = $50,900.

At the Beginning of the Year, Prepaid Insurance Had a Balance