(Solution Download) The prepaid insurance account had a balance of 7 000 at

The prepaid insurance account had a balance of $7,000 at the beginning of the year. The account was debited for $24,000 for premiums on policies purchased during the year. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:
(a) The amount of unexpired insurance applicable to future periods is $8,500;
(b) The amount of insurance expired during the year is $22,500.