At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of $6,240 and Insurance Expense of $0. The insurance was purchased on July 1 and provides coverage for 24 months.

1.	Prepare the adjusting journal entry on December 31. (If no entry is required for a transaction/event,select "No Journal Entry Required" in the first account field.)

2.	Prepare theT-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance.