A calendar year company paid $$24,000$ on October $1,2019$ to purchase two years of insurance

coverage for its retail shop. The prepayment was initially recorded as an asset. $($Total $7$ marks$)$

A$)$ What adjusting journal entry is necessary at December $31,2019?$

B$)$ How much will be reported on the balance sheet at December $31,2019,$ for prepaid

insurance?

C$)$ How much will be reported on the income statement for the year ended December $31,$

$2019,$ for insurance expense?

D$)$ If the adjustment in part A is not recorded, by what amount will net income be over or

understated at December $31,2019?$

E$)$ What adjusting journal entry is necessary at December $31,2020?$

F$)$ How much will be reported on the balance sheet at December $31,2020,$ for prepaid

insurance?

G$)$

How much will be reported on the income statement for the year ended December $31,$

$2020,$ for insurance expense?