On January 1,2017,Prepaid Insurance had a balance of $6,700 and on December 31,2017,a balance of $8,320.The income statement for the year reported Insurance Expense of $49,310.Payments for insurance during the year amounted to:

Question

Quizplus · Accepted Answer

The payments for insurance can be calculated by adding the insurance expense to the increase in prepaid insurance: $49,310 (Insurance Expense) + ($8,320 - $6,700) (Increase in Prepaid Insurance) = $50,930.

On January 1,2017,Prepaid Insurance Had a Balance of $6,700 and on December