Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $13,194 and unexpired insurance of $2,046, for the fiscal year ending on April 30-debit Prepaid Insurance, $5,849; credit Insurance Expense, $5,849-debit Prepaid Insurance, $10,209; credit Insurance Expense, $10,209-debit Insurance Expense, $10,209; credit Prepaid Insurance, $10,209-debit Insurance Expense, $5,849; credit Prepaid Insurance, $5,849

Debit Insurance expense $11,148

Credit Prepaid insurance $11,148

The right answer is not given in the options.

Explanation:

The prepaid insurance account balance is the amount unexpired or unused and as such yet to be amortized to the insurance expense account.

Given that the unadjusted balance is $13,194 and the unexpired insurance of $2,046, for the fiscal year ending on April 30, the expired insurance is

= $13,194 - $2,046

= $11,148

Adjusting entries required

Debit Insurance expense $11,148

Credit Prepaid insurance $11,148

Being entries to recognize insurance expense incurred as at April 30.