Early in 2018, Benton Well Supplies Discovered That a Five-Year

question 88

Multiple Choice

Early in 2018, Benton Well Supplies discovered that a five-year insurance premium payment of $50,000 at the beginning of 2015 was debited to insurance expense. The correcting entry would include:

• A) A credit to retained earnings of $20,000.
• B) A debit to insurance expense of $20,000.
• C) A debit to prepaid insurance of $30,000.
• D) A debit to prepaid insurance of $50,000.

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Definitions:

Hypertension

A medical condition in which the blood pressure in the arteries is persistently elevated, often leading to increased risk of heart disease, stroke, and other health problems.

Arrhythmia

A condition involving irregular heartbeats, which can be too fast, too slow, or erratic, potentially leading to health problems.

Heartbeat

The rhythmic contraction and relaxation of the heart, pumping blood throughout the body.

Angina Pectoris

A condition characterized by chest pain due to reduced blood flow to the heart muscle.