LePage Corporation reported a beginning balance of $2,200 in its Prepaid Insurance account.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 LePage pay for insurance during the year?
A)$16,600
B)$17,400
C)$17,000
D)$18,800

Question

Quizplus · Accepted Answer

Ending balance of prepaid insurance of $1,800 = Beginning balance of prepaid insurance of $2,200 + Increase due to premiums paid in advance (the unknown)- Decrease due to insurance expense of $17,000
Premiums paid in advance = $1,800 - $2,200 + $17,000 = $16,600

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