At December 31, 2011, before any year-end adjustments, Cable Car Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800.It was determined that $3,000 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be

Question

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The expired prepaid insurance of $3,000 should be added to the existing insurance expense of $1,450, resulting in an adjusted insurance expense of $4,450.

At December 31, 2011, Before Any Year-End Adjustments, Cable Car