Adjusting Entries for Prepaid Insurance The prepaid insurance account had a balance of $6,100 at the beginning of the year. The account was debited for $6,800 for premiums on policies purchased during the year. Journalize the adjusting entry required at the end of the year for each of the following situations: a. The amount of unexpired insurance applicable to future periods is $1,100. If an amount box does not require an entry, leave it blank. Insurance Expense Prepaid Insurance 88 F Check My Wor 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 nee by making sure that the entry affects at least one income statement account and one balance sheet account. b. The amount of insurance expired during the year is $11,800. If an amount box does not require an entry, leave it blank. Insurance Expense Prepaid Insurance