Assets, January 1 Liabilities, January 1 Assets, December 31 Liabilities, December 31 Investment by owner Revenues Expenses Withdrawals $ 49,000 27,000 89,000 52,000 21,900 9,200 8,000 Ruler Company Paid $12,600 for two years of insurance on July The journal entry to record the payment was: Insurance Expense 12,600 Cash 12,600 Prepare the required adjusting journal entry on December 31