The following information relates to action sign company for 20X2
Insurance expense $4,350 prepaid insurance dec 20X2 $1,900 Cash outlays for insurance during 20X2 $6,200
Compute the balance in the prepaid insurance account on January 1, 20X2

Take your Prepaid account beginning balance and add your cash outlay minus your insurance expense to get your ending Prepaid account balance.