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The balance in the Prepaid Insurance Account on January 1 (first day of the fiscal year) for Modern Company was $714. On April 1 it renewed its insurance policy with a new insurance company for 3 years making a payment in full of $8,568 to get 36 months of coverage.
Required 1: The adjusting journal entry on Prepaid Insurance on January 31 was for: $
Required 2: What is the year end balance of Prepaid Insurance reported in the balance sheet of Dec 31st? $
Required 3: What is the Insurance Expense reported on Annual Income Statement ended on December 31st? $
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