Answer:
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.
