The adjusted balance for Prepaid Insurance is a $7,124 debit. Insurance Expense for the period was $1,336. What was the balance for Prepaid Insurance on the unadjusted trial balance?

Question

Quizplus · Accepted Answer

We can use the following formula to calculate the balance of Prepaid Insurance on the unadjusted trial balance:

Unadjusted balance = Adjusted balance + Expense for the period

Substituting the given values, we get:

Unadjusted balance = $7,124 + $1,336
Unadjusted balance = $8,460

Therefore, the answer is C) $8,460 debit.

The Adjusted Balance for Prepaid Insurance Is a $7,124 Debit