Debit the prepaid account, in this case prepaid insurance, for five months of the premium. For example, a six-month premium of $450 would equal $75 per month, or $375 for five months.

On December 31, an adjusting entry will show a debit insurance expense for $400—the amount that expired or one-sixth of $2,400—and will credit prepaid insurance for $400.

Adjusting Journal Entry Details. Adjusting journal entries are made in the general ledger of a company at the end of an accounting period. A general ledger is record-keeping system companies use ...

Enter salary accruals as adjusting entries in the accounting journal. Specifically, record salary accruals of $12,000 for the month as a debit under the accounting period date, such as Jan. 31.