1 Enter the transactions into the T-accounts and then into the four- column ledgers. Be sure to calculate the balance after each entry in the four-column ledgers. On Dec. 1, paid $8,000 for a one year insurance policy. Prepaid insurance Prepaid Insurance Date Explanation Ref Debit Credit Balance Cash Cash Date Explanation Ref Debit Credit Balance On Dec. 1. purchased $8,000 of equipment on account. Equipment W tv On Dec. 1. purchased $8,000 of equipment on account. Equipment Equipment Date Ref Explanation Debit Balance Credit Accounts Payable Accounts Payable Explanation Ref Debit Date Credit Balance 2 to