WHat the accounts of Daniel Barenboim Inc are examined, the adjusting data listed below are uncovered on 12/31, the end of an annual fiscal period.

Q. The prepaid insurance account shows a debit $5280, representing the cost of a 2 year fire insurance policy dated August 1 of the current year.

So, my question is, why does the transaction above not need a reversing entry?

The adjusting entry for the question is Dr) Insurance Expense 1100 Cr) prepaid Insurance 1100. and here, you can see that an I/S account is involved in adjusting entry, so I thought that all I/S account should be reversed even though the reversing entry is optional.