Wilson Company paid $5,400 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,400, and no adjustments had been made previously. The adjusting entry required on December 31 is: Wilson Company paid $5,400 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,400, and no adjustments had been made previously. The adjusting entry required on December 31 is: Debit Prepaid Insurance, $2,700; credit Insurance Expense, $2,700. Debit Prepaid Insurance, $1,350; credit Insurance Expense, $1,350. Debit Cash, $5,400; Credit Prepaid Insurance, $5,400. Debit Insurance Expense, $2,700; credit Prepaid Insurance, $2,700. Debit Insurance Expense, $1,350; credit Prepaid Insurance, $1,350. Prior to recording adjusting entries, the Office Supplies account had a $374 debit balance. A physical count of the supplies showed $113 of unused supplies available. The required adjusting entry is: Debit Office Supplies $113 and credit Office Supplies Expense $113 Debit Office Supplies $261 and credit Office Supplies Expense $261. Debit Office Supplies Expense $113 and credit Office Supplies $113. Debit Office Supplies Expense $261 and credit Office Supplies $261. Debit Office Supplies $113 and credit Supplies Expense $261