The balance in the prepaid insurance account before


The balance in the prepaid insurance account, before adjustment at the end of the year, is $11,500. Journalize the 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 $8,750; 

(b) The amount of unexpired insurance applicable to future periods is $2,750. 

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Accounting Basics: The balance in the prepaid insurance account before
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