Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $13,194 and unexpired insurance of $2,046, for the fiscal year ending on April 30-debit Prepaid Insurance, $5,849; credit Insurance Expense, $5,849-debit Prepaid Insurance, $10,209; credit Insurance Expense, $10,209-debit Insurance Expense, $10,209; credit Prepaid Insurance, $10,209-debit Insurance Expense, $5,849; credit Prepaid Insurance, $5,849

Debit Insurance expense  $11,148

Credit Prepaid insurance   $11,148

The right answer is not given in the options.

Explanation:

The prepaid insurance account balance is the amount unexpired or unused and as such yet to be amortized to the insurance expense account.

Given that the unadjusted balance is $13,194 and the unexpired insurance of $2,046, for the fiscal year ending on April 30, the expired insurance is

= $13,194 - $2,046

= $11,148

Adjusting entries required

Debit Insurance expense  $11,148

Credit Prepaid insurance   $11,148

Being entries to recognize insurance expense incurred as at April 30.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20