Adjusting entries for prepaid insurance OBJ. 2 The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,630. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:

(a) the amount of insurance expired during the year is $15,300;

(b) the amount of unexpired insurance applicable to future periods is $3,330..