Question Content Area

Adjusting Entries for Prepaid Insurance

The balance in the prepaid insurance account, before adjustment at the end of the year, is $$12,740.$ Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:

Question Content Area

a$.$ The amount of insurance expired during the year is $$9,680.$ If an amount box does not require an entry, leave it blank.

blank

Question Content Area

b$.$ The amount of unexpired insurance applicable to future periods is $$3,060.$ If an amount box does not require an entry, leave it blank.

blank