Adjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $15,290. 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 $11,620. Insurance Expense Prepaid Insurance X X Feedback Check My Work Set up a Prepaid Insurance T-account. Consider each situation by recalling that prepaid insurance expires and becomes an expense with the passag insurance expense is the amount needed to arrive at the given ending balance. Complete your adjusting entry by making sure that the entry affects a income statement account and one balance sheet account. Learning Objective 3 b. The amount of unexpired insurance applicable to future periods is $3,670. Insurance Expense Prepaid Insurance