The balance in the prepaid insurance account, before adjustment at the end of the year, is $14,800.

Question:

The balance in the prepaid insurance account, before adjustment at the end of the year, is $14,800. 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 $11,200;
(b) The amount of unexpired insurance applicable to future periods is $3,600.