Adjusting Entries for Prepaid Insurance
The prepaid insurance account had a balance of $9,400 at the beginning of the year. The account was debited for $10,400 for premiums on policies purchased during the year.
Journalize the adjusting entry required at the end of the year for each of the following situations:
a. The amount of unexpired insurance applicable to future periods is $1,700. If an amount box does not require an entry, leave it blank.
Insurance Expense
Prepaid Insurance
b. The amount of insurance expired during the year is $18,100. If an amount box does not require an entry, leave it blank.