Goodfellow Corporation reported insurance expense of $477 for the current year.The beginning and ending balances in the prepaid insurance account were $50 and $30,respectively.What was the amount of cash paid for insurance?

Question

Quizplus · Accepted Answer

The amount of insurance paid can be calculated using the formula:
Amount of insurance paid = Insurance expense for the year + Beginning balance of prepaid insurance - Ending balance of prepaid insurance
= $477 + $50 - $30
= $497 - $30
= $467
Therefore, the amount of cash paid for insurance was $457 (option B).

Goodfellow Corporation Reported Insurance Expense of $477 for the Current