The trial balance of Ortiz Company as of January $31,20$X$1,$ after the company completed the first month of operations, is shown in the partial worksheet below.

Required:

Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $$6,600$; expired insurance, $$6,700$; depreciation expense on equipment for the period, $$2,800.$

Analyze:

How does the insurance adjustment affect Prepaid Insurance?