Transcribed Image Text: Adjusting entries for prepaid insurance Instructions Chart of Accounts Journal Instructions The balance in the prepaid insurance account, before adjustment at the end of the year, is

Transcribed Image Text: Adjusting entries for prepaid insurance
Instructions Chart of Accounts
Journal
Instructions
The balance in the prepaid insurance account, before adjustment at the end of the year,
is $18,565. The year end is March 31.
Journalize the March 31 adjusting entry required under each of the following
alternatives for determining the amount of the adjustment: (a) the amount of insurance
expired during the year is $14,135; (b) the amount of unexpired insurance applicable to
future periods is $4,430. Refer to the Chart of Accounts for exact wording of account
titles.