The LaPage Corporation reported a beginning balance of $2,200 in its Prepaid Insurance account for 2016.During the year,a total of $17,000 was recognized as Insurance Expense and the Prepaid Insurance account had an ending balance of $1,800.How much cash did LaPage pay for insurance during 2016?
A)$16,600
B)$17,400
C)$17,000
D)$18,800

Question

Quizplus · Accepted Answer

Insurance Expense = Beginning Prepaid Insurance + Cash Paid for Insurance - Ending Prepaid Insurance$17,000 = $2,200 + Cash Paid for Insurance - $1,800Cash Paid for Insurance = $17,000 - $2,200 + $1,800Cash Paid for Insurance = $16,600

The LaPage Corporation Reported a Beginning Balance of $2,200 in Its