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on the end-of-period spreadsheet, prepaid insurance has a balance of $2400 in the unadjusted trail balance...

on the end-of-period spreadsheet, prepaid insurance has a balance of $2400 in the unadjusted trail balance debit column and an adjustment of $200 in the adjustments credit column. what amount should appear for prepaid insurance in the adjusted trail balance column and ultimately the balance sheet?

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Expert Solution

The credit balance in adjusted trial balance reflects the journal entry which pertains to the debit of insurance expense related to the current period. Credit amount should be subtarcted from the prepaid balance of $2,400 and therefore, net debit amount of $2,200 will be shown in the adjusted trial balance and ultimately in the balance sheet.

ekkarill92 answered 2 years ago
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