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B debit to Insurance expense for 400. The accounts payable account is decreased with a 7. Adjusting Entries For Asset Accounts Accountingcoach One objective of the adjusting entry is to match the proper amount of insurance expense to the period indicated on the income statement. . To place an amount on the left-hand side of the T account is to 4. The adjusting journal entry is done each month and at the end of the year when the insurance policy has no future economic benefits the prepaid insurance balance would be 0. If not reconcile the two and adjust as necessary. This is done with an adjusting entry at the end of each accounting period eg. The period for which insurance is prepaid is generally one year but may exceed a year in certain cases. A 12-month insurance policy was purchased on Dec. C credit to Insurance expense for 400. Amount to be adjusted Beginning balance - ending balance Amount to be adjus...

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