The prepaid insurance account had a beginning balance of $9,600 and was debited for $12,900 of premiums paid

The prepaid insurance account had a beginning balance of $9,600 and was debited for
$12,900 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $7,360.


Answer:

Insurance Expense 15,140
Prepaid Insurance 15,140
Insurance expired ($9,600 + $12,900 – $7,360).