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28 April, 23:35

At December 31, 2018, before any year-end adjustments, Concord Company's Insurance Expense account had a balance of $2570 and its Prepaid Insurance account had a balance of $3900. It was determined that $2700 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be

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  1. 28 April, 23:57
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    The adjusted balance for Insurance Expense for the year will be $5,270

    Explanation:

    Prepaid Insurance is the value of Insurance paid before it becomes accrued and it is an current asset balance. It will be accrued as each month passes the monthly amount will be charged as expense and transferred to the Insurance expense account.

    Unadjusted values:

    Insurance Expense = $2,570

    Prepaid Insurance = $3,900

    Adjustment value of the insurance = $2700

    Adjusted values:

    Insurance Expense = $2,570 + $2,700 = $5,270

    Prepaid Insurance = $3,900 - $2,700 = $1,200
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Home » Business » At December 31, 2018, before any year-end adjustments, Concord Company's Insurance Expense account had a balance of $2570 and its Prepaid Insurance account had a balance of $3900. It was determined that $2700 of the Prepaid Insurance had expired.
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