This entry will increase Prepaid Insurance by the amount that should be the balance after the adjusting entry. An expense account should be debited to recognize the expense. On July 1, Mesa Verde, Inc. purchased a 3-year insurance policy for $12,600. Prepaid Insurance was debited for the entire amount. On December 31, when the annual financial statements are prepared, the appropriate adjusting journal entry would be O Insurance Expense $2,100 Prepaid Insurance $2,100 O Prepaid Insurance 2,100 Insurance $2. Insurance Expense $2,100 Insurance Expense $10,500 Prepaid Insurance 10,500 O Prepaid Insurance10,s00 Insurance Expense $10,500 Click if you would like to Show Work for this question:Sho Wrk Practice Question 27 While the debit and credit accounts are correct, the amount is the yearly depreciation amount, not depreciation for the 5 months elapsed between August 1 and December 31 On August 1 the Darius Co. purchased a photocopy machine for $8,000. The estimated annual depreciation on the machine is $1,680. If the company prepares annual financial statements on December 31, the appropriate adjusting journal entry to make on December 31 of the first year would be $700 Expense Equipment 700 O Depreciation Expense $140 $140 $700 $700 O Depreciation Expense $1,680 $1,680 Click if you would like to Show Work for this question: een Show Work