Oglethorpe Corporation reported a beginning balance of $12,400 in its Prepaid Insurance account.During the year,Oglethorpe paid a total of $42,000 to purchase insurance,and the Prepaid Insurance account had an ending balance of $13,100.What was the amount of insurance expense for the year?
A)$42,000
B)$42,300
C)$42,700
D)$41,300

Question

Quizplus · Accepted Answer

Ending balance of prepaid insurance of $13,100 = Beginning balance of prepaid insurance of $12,400 + Increase due to premiums paid in advance of $42,000 - Decrease due to insurance expense (the unknown)
Insurance expense = $12,400 + $42,000 - $13,100 = $41,300

Oglethorpe Corporation Reported a Beginning Balance of $12,400 in Its