3 Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Used prepaid insurance of $310. The Prepaid Insurance unadjusted balance as of December 31 is $11,900. Adjustment Type: Insurance Expense Prepaid Insurance A two year insurance policy for $1,320 was purchased on November 1 of the current year. Record the transaction for the year ended December 31. Adjustment Type: Insurance Expense Depreciation for the current year includes Equipment, $4,200. The Accumulated Depreciation - Equipment unadjusted balance as of December 31 is $6,400. Adjustment Type: Prepaid Insurance Depreciation Expense - Equipment Accumulated Depreciation - Equipment