Adjusting Entries for Prepaid Insurance

The prepaid insurance account had a balance of $9,500 at the beginning of the year. The account was debited for $10,500 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 $1,800

b. The amount of insurance expired during the year is $18,200.