Final answer:
The proper adjusting entry at June 30, the end of the fiscal year, based on the prepaid insurance account balance of $18,500 and unexpired amounts per analysis of policies of $6,000, would be to debit the Prepaid Insurance account for the amount of $6,000 and credit the Insurance Expense account for the same amount.
Step-by-step explanation:
The proper adjusting entry at June 30, the end of the fiscal year, based on the prepaid insurance account balance of $18,500 and unexpired amounts per analysis of policies of $6,000, would be to debit the Prepaid Insurance account for the amount of $6,000 and credit the Insurance Expense account for the same amount.