eBook Show Me How Calculator Print Item Adjustment for Prepaid Expense The prepaid insurance account had a beginning balance of $11,500 and was debited for $18,000 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $13,000. If an amount box does not require an entry, leave it blank. Insurance Expense 1,500 X Insurance Payable x 1,500 X Accounts Payable Fe Accounts Receivable Cash Ince T-account. Recall that prepaid insurance expires and becomes an expense with the passage of time. The Insurance Expense e amount needed to arrive at the given ending balance. Premiums paid are increases to the account. The unexpired Insurance Payable blance to the account. Solve for the expense by keeping in mind that the beginning balance of prepaid insurance plus he insurance expense (expired) equals the ending balance of prepaid insurance. Complete your adjusting entry by Insurance Revenue Icts at least one income statement account and one balance sheet account. Prepaid Insurance Check My Work 2 more Check My Work uses remaining Previous Next > All work saved. Save and Exit Submit Assignment for Grading 30.955 )) 20 8 A W