The prepaid insurance account had a balance of $6,860 at the beginning of the year. The account was debited for $25,560 for premiums on policies purchased during the year, ending on March 31.

Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of unexpired insurance applicable to future periods is $8,010; (b) the amount of insurance expired during the year is $24,410. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTSGeneral LedgerASSETS11Cash12Accounts Receivable13Supplies14Prepaid Insurance15Land16Equipment17Accumulated Depreciation-Equipment19Accumulated Depreciation-Automobiles

LIABILITIES21Accounts Payable22Unearned Fees23Salaries Payable24Taxes Payable

EQUITY31John Doe, Capital32John Doe, Drawing

REVENUE41Fees Earned

EXPENSES51Advertising Expense52Insurance Expense53Rent Expense54Salary Expense55Supplies Expense56Utilities Expense57Depreciation Expense59Miscellaneous Expense