adjusting entry for December 31, 2014. O3 Adjusting Entries for Prepaid Insurance E4A. An examination of the Prepaid Insurance account shows a balance of $10,280 at the end of an accounting period, before adjustment. Prepare journal entries to record the insurance expense for the period under the following independent assumptions: 1. An examination of the insurance policies shows unexpired insurance that cost $4,935 at the end of the period 2. An examination of the insurance during the period