The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 for premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $4,100.

Prepaid Insurance

Payments made in advance for insurance coverage, which are recorded as an asset and expensed over the period of coverage.

Adjusting Entry

An accounting record made to update the balances of accounts to reflect the true financial position before preparing financial statements.

Unexpired Insurance

The portion of the insurance premium that has not yet expired or been used up, considered a prepaid expense.