Alonso Ltd. has insured all its cars. They often pay for the insurance at the beginning of January each year. In January 2023, Alonso has the following information about the prepaid insurance account: Opening Balance $ $800 1st January Closing Balance $ $3,100 31st January You also are told that during January, Alonso Ltd. recognised $1,100 in insurance expenses.

Required: a. Construct all the T accounts (you will need at least two) to show all the movements relevant to this question (please ignore GST).

b. Explain the reasons why you are debiting and crediting the accounts