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EXPENSE METHOD

2022 beg Insurance Expense 1000


Cash 1000

2022 end Prepaid Insurance 600


Insurance Exepense 600

2022 balance Insurance Expense 400 Dr


Prepaid Insurance 600 Dr

2023 reverse Insurance Expense 600


Prepaid Insurance 600

2023 balance Insurance Expense 1000 to R/E 400


Prepaid Insurance 0
ASSET METHOD

Prepaid Insurance 1000


Cash 1000

Insurance Expense 400


Prepaid Insurance 400

Prepaid Insurance 600 Dr


Insurance Expense 400 Dr to R/E

600 Dr. Prepaid Insurance 600 Dr.

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