Exercise 3-4 Prepare and post adjusting entry for insurance (L.O.4) a. A one-year insurance policy was purchased on November 1 for $2,400, and the following entry was made at that time: 2,400 Prepaid Insurance Cash 2,400 What adjusting entry is necessary at December 31, the end of the accounting year? b. Show how the T-accounts for Prepaid Insurance and Insurance Expense would appear after the entries are posted