December $31,2021$

Task $-$ Based on the information provided, use the workpaper template to account for the additions to prepaid insurance during the year and the related amortization of prepaid expenses during the year to determine

and support the amount of prepaid insurance as of $12/31/2021$ and the support the amount of insurance expense for the year ended $12/31/2021.$ The additions identified to prepaid insurance were already

processed to the books, but the amortization effect was not computed for the year. The amortization of prepaid insurance is based on the premium amount divided by the months of the policy $($note the period of the

policy is given$).$ Prepare the adjustment to prepaid expense as of $12/31/2021$ and insurance expense for the year ended $12/31/2021$ based on the information provided.

Prepare the adjustment identified from your analysis to prepaid insurane and insurance expense as of $12/31/2021.$

Compare the book balances to the schedule of prepaid insurance and insurance expense as of and for the year ended $12/31/2021.$

Key for adjustments:

Balance Sheet signs: Assets are $+$ numbers and Liabilities$/$Equity are $-$ numbers.

Income Statement sign: Expenses are $+$ numbers and Revenues are $-$ numbers.

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