The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize the adjusting entry required under each of the follo a. The amount of insurance expired during the year is $20,250. Insurance Expense Prepaid Insurance v Feedback Check My Work Set up a Prepaid Insurance T-account Consider each situation by recalling that prepaid insurance expires and becomes an expense with the passage of time. The insurance expense Complete your adjustin g entry by making sure that the entry affects at least one income statement account and one balance sheet account Learning Objective 3 e amount of unexpired insurance applicable to future periods is s6,750 Insurance Expense v Prepaid Insurance v Feedback The unexpired amount is the ending balance to the account