Your answer is correct. Prepare Splish Brothers's August 1 journal entry and the December 31 adjusting entry, treating the expenditure as an asset. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Debit Account Titles and Explanation Prepaid Insurance Aug. 1 12816 Cash Dec. 31 Insurance Expense 2670 Prepaid Insurance e Textbook and Media List of Accounts - Your answer is partially correct. Prepare Splish Brothers's August 1 journal entry and the December 31 adjusting entry, treating the expenditure as an expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Debit Account Titles and Explanation Insurance Expense Aug. 1 12816 Cash Dec. 31 V No Entry No Entry