Adjusting Entries for Prepaid Insurance

The balance in the prepaid insurance account, before adjustment at the end of the year, is $21,700. 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 $16,450

Insurance Expense _____________

Prepaid Insurance _______________

B. The amount of unexpired insurance applicable to future periods is $5,250.

Insurance Expense ____________

Prepaid Insurance _____________