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Assume Idaho Company recorded the following adjusting journal entry at year-end: Insurance expense $3,800 Prepaid insurance $3,800 If the beginning balance in prepaid insurance was
Assume Idaho Company recorded the following adjusting journal entry at year-end:
Insurance expense | $3,800 | |||
Prepaid insurance | $3,800 |
If the beginning balance in prepaid insurance was $800, and $6,000 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?
Multiple Choice
A)$5,700.
B)$2,700.
C)$3,000.
D)$3,200.
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