Incurred interest expense of $1,100. Adjustment Type: Interest Expense Interest Payable Employees earned $1,100 in salaries that will be paid next month. The Salaries Expense unadjusted balance as of December 31 is $6,500. Adjustment Type: Salaries Expense Salaries Payable Activity 4.a - Using T-accounts to Analyze Adjustments 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. A two year insurance policy for $10,560 was purchased on November 1 of the current year. Record the transaction for the year ended December 31. Adjustment Type: Deferrals/Prepaids Insurance Expense Prepaid Insurance Dec. 31 880 Nov. 1