At $1$ January $20$X$1,$ the company paid an insurance premium $($prepayment$)$ of $9,600.$ Assume no insurance payments were made during the year and insurance expense on the statement of profit or loss for the year is $2,200,$ as a result of a proper accounting adjustment at the end of the year. Deferred insurance expenses on the $31$ December $20$X$1$ statement of financial position would be: My answer is $7400$ but my teacher's $11800.$ Can you explain why?