Check my Exercise 5.2 (Algo) Calculating adjustments. LO 5-2 1. A firm purchased a four-year insurance policy for $7.200 on July 1, 20X1. The $7.200 was debited to the Prepaid Insurance account 2. On December 1, 20x1, a firm signed a contract with a local radio station for advertising that will extend over a three-year period, The firm paid $41,400 in advance and debited the amount to Prepaid Advertising ook Prepare end-of-month adjusting entries for each of the above situations. View transaction list ences Journal entry worksheet Prepare the adjusting entry for insurance Note: Enter debts before credite Transaction General Journal Debit Credit