The LaPage Corporation Reported a Beginning Balance of $2,200 in Its

question 90

Multiple Choice

The LaPage Corporation reported a beginning balance of $2,200 in its Prepaid Insurance account for 2016.During the year,a total of $17,000 was recognized as Insurance Expense and the Prepaid Insurance account had an ending balance of $1,800.How much cash did LaPage pay for insurance during 2016?

• A)$16,600
• B)$17,400
• C)$17,000
• D)$18,800

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing to be enforceable.

United States Code

The comprehensive, codified collection of the permanent general and special laws of the United States federal government.

Suretyship Provision

A legal agreement in which a third party agrees to be responsible for the debt or obligation of another party if that party fails to perform or pay.

Main Purpose Doctrine

A legal principle that a promise to pay the debt of another does not need to be in writing if the guarantor's main purpose benefits themselves.