On January 9, Evergreen Market purchased a one-year insurance policy for $500, paying cash. (Recall that the right to insurance protection is an asset. For this asset, use the term “Prepaid Insurance.”)

Change the following January 8 balance sheet so that it reports the financial condition on January 9.

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EVERGREEN MARKET BALANCE SHEET AS OF JANUARY 8 Assets Liabilities & Equity Cash. $47,200 Accounts Payable..... $ 4,000 Accounts Receivable.... 1,800 Note Payable..... 10,000 Inventory 6,300 Berg, Capital 40,000 Retained Earnings. 1,300 Total. $55,300 Total. $55,300