At 31 December 2018, before any year-end adjustments, Hart Company's Insurance Expense account had a balance of $725 and its Prepaid Insurance account had a balance of $1,900. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be:
A) $1,500.
B) $725.
C) $2,225.
D) $1,175.

Question

Quizplus · Accepted Answer

The adjusted balance to Insurance Expense for the year would be $2,225 ($725 + $1,500).

At 31 December 2018, Before Any Year-End Adjustments, Hart Company's