=+Adjustment for prepaid insurance Obj 3 The prepaid insurance account had a balance of $3,600 at the beginning ofthe year. The account was increased for $4,800 for premiums on policies purchased during the year. What is the ad¬

justment required at the end ofthe year for each ofthe following independent situations:

(a) the amount of unexpired insurance applicable to future periods is $2,700,

(b) the amount ofinsur¬

ance expired during the year is $4,150? For

(a) and (b), indicate each account affected, whether the account is increased or decreased, and the amount ofthe increase or decrease.