On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $53,400. During 2021, $91,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was $44,500. Insurance expense for 2021 was: Multiple Choice A.$144,400. B. $8,900. C.$99,900. D. $91,000

Option "C" is the correct answer to the following statement.

$99,900

Explanation:

Given:

Balance on 31 Dec 2020 = $53,400

Opening balance on 1st Jan 2021 = $53,400

Amount paid during the year = $91,000

Closing Balance on 31 Dec 2021 = $44,500

Insurance expense for 2021 = ?

Computation:

Insurance expense for 2021 = Opening balance + Amount paid during the year - Closing balance

= $53,400 + $91,000 - $44,500

= $144,400 - $44,500

= $99,900

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough