Answer:
(A)  Debit Insurance expense $20,250
      Credit Prepaid insurance $20,250
      Being entries to recognize insurance amortization expense for the year.
(B)  Debit Insurance expense $20,250
      Credit Prepaid insurance $20,250
      Being entries to recognize insurance amortization expense for the year.
Explanation:
Prepaid insurance account before adjustment = $27,000
(A) the amount of insurance expired during the year is $20,250
To account  for the expired amount,
Debit Insurance expense $20,250
Credit Prepaid insurance $20,250
Being entries to recognize insurance amortization expense for the year.
(B) the amount of unexpired insurance applicable to future periods is $6,750
Amount expired = $27,000 - $6,750
                            = $20,250
To account  for the expired amount such that the amount of unexpired insurance applicable to future periods is $6,750,
Debit Insurance expense $20,250
Credit Prepaid insurance $20,250
Being entries to recognize insurance amortization expense for the year.