At December 31, 2007, before any year-end adjustments, Bollis Company's Prepaid Insurance account had a balance of $2,700. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be?? plz help urgent
To find the adjusted balance for Insurance Expense for the year, we need to take into account the amount that expired.
Here's how to calculate it:
1. Start with the balance of the Prepaid Insurance account before any adjustments, which is $2,700.
2. Determine the amount of Prepaid Insurance that has expired, which is $1,500.
3. Subtract the expired amount from the beginning balance of Prepaid Insurance: $2,700 - $1,500 = $1,200.
The adjusted balance for Insurance Expense for the year is $1,200.