Adjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $9,440.

Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:

a. The amount of insurance expired during the year is $7,170.

b. The amount of unexpired insurance applicable to future periods is $2,270.

me i beg !

step-by-step explanation:

the correct option is 2.

step-by-step explanation:

according to the given information triangle abc is a right angle triangle with right angle at a. segment ab is 5 and segment ac is 7. point d is on segment bc and angles adb and adc are right angles.

it is given that triangles abd, cad, and cba are similar.

two triangles are similar if their corresponding sides are proportional.

in triangle cba, using pythagoras theorem

                      )

triangle abd and cba are similar,

                            (2)

triangle cad and cba are similar,

                      )

using (1), (2) and (3), we get

hence proved.

therefore option 2 is correct.