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

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.