The Lemmon Corporation reported a beginning balance of $1,200 in its Prepaid Insurance account for 2013. During the year, a total of $16,000 was recognized as Insurance Expense and the Prepaid Insurance account had an ending balance of $1,600. How much cash did Lemmon pay for insurance during 2013?
A)$17,200
B)$16,400
C)$16,000
D)$14,800

Question

Quizplus · Accepted Answer

$1,600 ending balance + $16,000 insurance expense - $1,200 beginning balance = $16,400 insurance purchased

The Lemmon Corporation Reported a Beginning Balance of $1,200 in Its