Switch between recording the policy as an asset first and as an expense first.
| Dec 26 | Prepaid insurance | 2,400 | |
| Cash | 2,400 |
| Dec 31 | Insurance expense | 100 | |
| Prepaid insurance | 100 |
The same idea works for unearned revenue: record the $3,000 as revenue on Dec 26, then at Dec 31 move the $2,750 not yet earned into Unearned Consulting Revenue. Ending balances match the liability-first method.
Either way: Prepaid insurance $2,300, Insurance expense $100
Touch the instrument to see what to notice.