Journal entries for insurance Momma Company, a U.S. clothing designer, manufacturer, and retailer, reported a balance in prepaid insurance of $90.7 million, based on its financial reports dated March 31, 2008, the end of its fiscal year. Assume that of this balance. $24 million relates to an insurance policy with two remaining months of coverage. Assume also that on June 1, 2008, the firm paid $156 million for a one-year renewal of this policy. Give the journal entries that Monana would make on April 30, 2008; May 30, 2008; June 30, 2008; and July 31, 2008; assuming that the firm closes its books monthly. Monana applies US. GAAP, and reports its results in millions of U.S. dollars.