Financial statement Impact on December 1, 2014 Golden Acres purchased hazard insurance. On December 31, 2014 an adjusting entry is required to jurnalze the insurance usedin December Two siders are provided to evaluate the financial statement impact of changes in the amount and term of the insurance. The sider impact is shown first on a timeline, and then in the Taccounts of the accounting equation. so $1,200 $2,400 $3,600 $4,800 12 months 18 months Term of insurance: Remaining Months Timeline Insurance Expense $0 Dec. 1, 2014 Dec. 31, 2014 prepaid insurance T Accounts Dec. 31, 2014 Prepaid Insurance Insurance Expense arch the web and Windows