Pilot Company reported the following information for 2016 and 2017. ? $\begin{array}{lr}
\text { Prepaid insurance, December } 31,2016 & \$ 2,400 \
\text { Prepaid insurance, December } 31,2017 & 1,500 \
\text { Insurance expense-2017 } & 14,200
\end{array}$ How much cash was paid for insurance during 2017?
A) $13,300
B) $14,200
C) $15,100
D) $15,700

Question

Quizplus · Accepted Answer

The change in prepaid insurance from 2016 to 2017 is a decrease of $900 ($2,400 - $1,500). This means that $900 of prepaid insurance was used during 2017. Adding this to the insurance expense of $14,200 gives $15,100, which is the amount of cash paid for insurance during 2017.

Pilot Company Reported the Following Information for 2016 and 2017