The balance in the prepaid insurance account, before adjustment at the end of the year is $18,630.

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 $14,160.

b. The amount of unexpired insurance applicable to future periods is $4,470.

a. The amount is given to you

b. You need to calcute the amount used. It is the differnce between the 2 amounts.

The adjusting entry will be: Debit Insurance Expense for the amount
Credit Prepaid Insurance for the amount