Assume Minor Company Recorded the Following Adjusting Entry at Year-End

question 51

Multiple Choice

Assume Minor Company recorded the following adjusting entry at year-end: If the beginning balance in prepaid insurance was $700 and $1,500 was paid for an insurance premium during the year,the ending balance in the prepaid insurance account (after the above adjusting entry) would be which of the following?

• A)$100 debit.
• B)$1,400 debit.
• C)$1,500 debit.
• D)$2,200 debit.

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Definitions:

Time And A Half

A rate of pay that is 1.5 times the employee's standard hourly wage, typically awarded for overtime hours worked.

Normal Wage

The standard or average amount of pay that workers receive for their labor in a specific job or industry.

Petty Cash Fund

Cash kept on hand in the office for small purchases.

Office Furniture

Items of furniture designed for use in a workplace environment, including desks, chairs, and file cabinets.