Oglethorpe Corporation Reported a Beginning Balance of $12,400 in Its

question 73

Multiple Choice

Oglethorpe Corporation reported a beginning balance of $12,400 in its Prepaid Insurance account.During the year,Oglethorpe paid a total of $42,000 to purchase insurance,and the Prepaid Insurance account had an ending balance of $13,100.What was the amount of insurance expense for the year?

• A)$42,000
• B)$42,300
• C)$42,700
• D)$41,300

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Definitions:

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Personal Assets

Assets owned by an individual as opposed to those owned by a business or an institution.

Transfer Agent

A trust company, bank, or similar financial institution assigned by a corporation to maintain records of investors, account balances and transactions, and to manage dividends and other disbursements.