Determining Fixed Asset's Book Value The balance in the equipment account is $3,150,000, and the balance in the accumulated deprecation-equipment account is $2,075,000. 2. What is the book value of the equipment? b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,075,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use. Adjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize 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 $20,250. b. The amount of unexpired insurance applicable to future periods is $6,750 Adjusting Entries for Prepaid Insurance The balance in the prepaid Insurance account, before adjustment at the end of the year, is $27,000. Journalize 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 $20,250. Accounts Payable ed insurance applicable to future periods is $6,750. Accounts Receivable Cash Insurance Expense Insurance Payable Insurance Receivable Insurance Revenue Prepaid Expense Prepaid Insurance