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E3-9 Adjustment for prepaid insurance Obj 3 The prepaid insurance account had a balance of $10,800 at the beginning of the year. The account was increased for $7,200 for premiums on policies purchased during the year. What adjustment required at the end of the year for each of is the insurance ap the independent situations: (a) the amount of unexpired following plicable to future periods is $8,000, (b) the amount of insurance expired during the year is $12 For (a) and (b), indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease