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