Liu Co.made an adjusting entry to reflect one year's expiration of insurance.Three years of insurance had been prepaid at the beginning of the year,with the entire amount being recorded as prepaid insurance.Show the effects of the adjusting entry. 
Definitions:
Reorganization
The process by which a company restructures its operations, policies, or structure to improve efficiency and address issues.
Reorganization Proposal
A plan submitted by a company to its creditors and shareholders outlining how it intends to restructure its debt and operations to exit financial distress.
Reorganization Plan
A Reorganization Plan is a legal document that specifies how a company will restructure its debts and operations to emerge from bankruptcy.
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