Exercise#9-PREPAID EXPENSES: August 1, 2018 Berk Inc. purchased an annual automobile insurance policy for $1,200. The accountant did not prepare any monthly adjusting journal entries for prepaid insurance. The accountant is preparing the December 31, 2018 financial statements for Berk. Prepare the original and the adjusting entries for the transaction. Credit Exercise #9: Berk Inc. for Insurance Date Account Title 1-Aug-18 Prepaid Insurance - Auto Cash Purchased one year automobile insurance policy Debit 1,200 1,200 Account Title Debit Credit Date 31-Dec-18) Recognized Insurance expensed due to passage of time