An examination of the Prepaid Insurance account shows a balance of $4,000 at the end of an accounting period, before adjustment.

Prepare entries in journal form to record the insurance expense for the period under the following independent assumptions: 1. An examination of the insurance policies shows that insurance that cost $2,000 at the end of the period. 2. An examination of the insurance policies shows that insurance that cost $700 has expired during the period.
General Ledger Account No. 000

Balance
Date Item Post. Ref. Debit Credit Debit Credit