3. What is the difference? c. How QS 3-4 Preparing adjusting entries (annual)-prepaid expense LO4 Decen Dec. 31, 2020 July 1, 2020 d. How May July Sept. Nov. Jan. Sept. QS 3-7 P Jan. 1, Dec. Feb. Apr. June Aug. Feb. June Aug. Oct. Oct. Apr. Dec. 2021 2020 Insurance coverage July 1, 2020 to June 30, 2021 Stud Muffin Bakery prepares financial statements on an annual basis and has a December 31, 2020 year-end. On July 1, 2020, the bakery purchased a one-year insurance policy for $12,000 cash. The insurance policy cov- ers July 1, 2020 to June 30, 2021. a. How much does the insurance policy cost per month? On Jan b. How many months are between July 1, 2020 and December 31, 2020? estim for $2 c. Record the journal entry on July 1, 2020. Dece d. In order to prepare the annual financial statements, record the adjusting journal entry on December 31, 2020. a. R b. W QS 3-5 Preparing adjusting entries (annual)-supplies LO4 C. U