A business pays its insurance premium of $2,400 on November 1 of each year. On January 1 of the new year (after December 31 adjustments), the Prepaid insurance account has a debit balance of

2/12 of the premium has expired, of course consider what happens if the premium is non refundable

The amount of premium unexpired will be the cost times 10/12 for 10 months remaining on the policy.