Adjusting entries for prepaid insurance Instructions Chart of Accounts Journal Instructions The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,710. Journalize the March 31 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 $15,940; (b) the amount of unexpired insurance applicable to future periods is $2,770. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Salaries Payable 24 Taxes Payable REVENUE 41 Fees Earned EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Salary Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Journal (a) Journalize the March 31 adjusting entry required when the amount of insurance expired during the year is $15,940. Refer to the chart of accounts for the the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals wil indent a credit entry when a credit amount is entered. 1 2 3 DATE DESCRIPTION Adjusting Entries JOURNAL ACCOUNTING EC POST. REF. DEBIT CREDIT ASSETS LIABILITIES (b) Journalize the March 31 adjusting entry required when the amount of unexpired insurance applicable to future periods is $2,770. Refer to the chart of acc exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. C will automatically indent a credit entry when a credit amount is entered. DATE DESCRIPTION Adjusting Entries JOURNAL ACCOUNTING EC POST. REF. DEBIT CREDIT ASSETS LIABILITIES