Brief Exercise 3-8 (Algo) Record the adjusting entry for prepaid insurance (LO3-3)

Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer purchases one year of flood insurance in advance on March 1, paying $30,600 ($2,550/month).

Required:

1. 1.&2. Record the necessary entries in the Journal Entry Worksheet below.

2. 3. Calculate the year-end adjusted balances of Prepaid Insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0).

Brief Exercise 3-8 (Algo) Record the adjusting entry for prepaid insurance (LO3-3) Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer purchases one year of flood insurance in advance on March 1, paying $30,600($2,550/month). Required: 1.\&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Prepaid insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0 ). Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Record the necessary entries in the Joumal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Complete this question by entering your answers in the tabs below. Calculate the year-end adjusted balances of Prepald Insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $50 )