Fill in the t$-$accounts for each situation and label each transaction as Deferrals$/$Prepaid

or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the

ending balance of each account.

Used prepaid insurance of $$1,600.$ The Prepaid Insurance unadjusted

balance as of December $31$ is $$8,500.$

Adjustment Type:

Insurance Expense

Prepaid Insurance

Depreciation for the current year includes Equipment, $$1,400.$ The

Accumulated Depreciation $-$ Equipment unadjusted balance as of

December $31$ is $$7,600.$