Two Ways of Recording Prepaid Expenses Unearned Revenue 1. Assume a company pays a full year of property insurance in advance on September 1 in the amount of $4800. Prepare the TRANSACTION ENTRY on 9-1 and the ADJUSTING ENTRY on 12-31. Follow the regular approach first and the alternative way second. Regular Approach 9-1: DR: DR: CR: CR: 12-31: DR: DR: CR: CR: "T" Accounts: Prepaid Insurance Prepaid Insurance Insurance Expense Insurance Expense