a.

b.

The prepaid Insurance account had a balance of $6,635 at the beginning of the year. The account was debited for $23,475 for premiums on policies purchased during the year. Journalire the adjusting entry mquired under each of the following alternatives for determining the amount of the adjustment: (a) the amount of unexpired insurance policiales periods a $8,750; (b) the amount of insurance expired during the year is $21,300 refer to the Chart of Accounts for exact wording of account nous (b) Joumalize the March 31 adjusting entry required when the amount of insurance expired during the year is $21,360. Refer to the chart of accounts for the exact wording of the account titlos. CNOW foumais do not use lines for oumal explanations. Every line on a journal page is used for debit or credit entries. CNOW }ourals will automatically indent a crody entry when a credit amount is entered. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE POST REF DEBIT CREDIT DESCRIPTION Adjusting Entries LABUTIES TOUTY (a) Joumalize the March 31 adjusting entry required when the amount of unexpired insurance applicable to ture periods is $8,750. Refer to the chart of accounts for the exact wording of the account thes. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or crecht entrios. CNOW Journals will automatically inderita credit entry when a credit amount is entered Pack JOURNAL ACCOUNTING EQUATION DATE POST REY DESCEPTION Adjusting Entries DEAT I CREDIT ASSETS LIABILITIES TOUT