On March 1, 2017, Eire Co. paid $4,800 to Big North Insurance for a one-year insurance policy. Eire Co. has a December 31 fiscal year end and adjusts accounts annually. Complete the following for Eire Co.
(a) Prepare the March 1, 2017, journal entry for the purchase of the insurance.
(b) Calculate the amount of insurance that expired during 2017 and the unexpired cost at December 31, 2017.
(c) Prepare the adjusting entry required at December 31, 2017.