Adjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $15,890. 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 $12,080. Insurance Revenue Insurance Revenue Feedback x K270 X X 3,810 X 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 passage of time. The insurance expense is the amount needed to arrive at the given ending balance. Complete your adjusting entry by making sure that the entry affects at least one income statement account and one balance sheet account. Leaming Objective 3. b. The amount of unexpired insurance applicable to future periods is $3,810. Insurance Expense Insurance Revenue x Feedback Check My Work The unexpired amount is the ending balance to the account