Insurance Expense Adjusting Journal Entry. Unexpired insurance (asset) account, the adjusting journal entry requires a debit $50 (debit) for one month’s expired insurance in the insurance expense (14). Adjusting entries help balance your books.
It is part of the adjusting entries in the accounting cycle that each accountant shall be carried out as part of their closing process. Notice that the amount for which adjustment is made differs under two methods, but the final amounts are the same, i.e., an insurance expense of $450 and prepaid insurance of $1,350. Expense method asset method insurance expense p3,600 prepaid insurance p3,600 cash p3,600 cash p3,600 to record insurance premium paid.