Adjusting entries for prepaid insurance The balance in the prepaid insurance account, before adjustment at the end of the year, 15,521,150,j0urnalize 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 $16,070, if an amount box does not require an entry, leave it blank. Fereback Check Mork Set up a Prepaid Insurance. T-accoant. 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. b. The amount of unexpired irisurance applicable to future periods is $5,080. If an amount box does not require an entry, leave it blank