A company makes the payment of a one-year insurance premium of $3,528 on March 1, 2016.

a-1 Use the horizontal model to record the above transaction. (Use amounts with + for increases and amounts with for decreases.)

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders' Equity

Net Income

=

Revenues

-

Expenses

=

+

=

-

=

+

=

-

a-2 Write the journal entry to record the above transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal Entry Worksheet

Record the payment of a one-year insurance premium.

Date

General Journal

Debit

Credit

Mar 01

*Enter debits before credits

c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2016 balance sheet with respect to this policy.