Question

the prepaid insurance account had a $5,000 balance at the beginning of the year. an analysis of insurance policies shows that $1,700 of unexpired insurance benefits remain at december 31. note: enter debits before credits. transaction general journal debit credit d.

Explanation:

Step1: Calculate expired insurance

The beginning balance of prepaid - insurance is $5000 and the unexpired amount at the end of the year is $1700. The expired insurance is the difference between the beginning balance and the unexpired amount. So, $5000 - 1700=3300$.

Step2: Record the journal entry

The expired insurance is an expense (Insurance Expense), which is debited, and the prepaid - insurance account is credited as the asset is being used up.

Answer:

Transaction	General Journal	Debit	Credit
	Prepaid Insurance		$3300$