Brief Exercise 3-8 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 $26,400 ($2,200/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). Journal entry worksheet Record the purchase of insurance on March 1. Note: Enter debits before credits. Date General Journal Debit Credit March 01 Record entry Clear entry View general journal Journal entry worksheet