EX 3-14 Adjusting Entries for Prepaid Insurance Obj. 3 The balance in the prepaid insurance account, before adjustment at the end of the year, is $22,500. 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 $18,000; (b) the amount of unexpired insurance applicable to future periods is $4,500