Exercise 4.8 Adjusting entry for prepaid insurance Kreative Kitchens purchased a 1-year insurance policy on 1 March 2020. The entire premium of $18 000 was recorded by debiting Prepaid Insurance. Ignore GST. Required (a) Give the adjusting entry at 30 June for year ending 30 June 2020. (b) What amount should be reported in the 30 June 2020 statement of financial position for Prepaid Insurance? c) If no adjusting entry was made on 30 June, by how much would profit be overstated or understated? Would assets be overstated or understated? Explain. (d) What would your adjusting entry in requirement A be if the premium of $18 000 was recorded by debiting Insurance Expense