Midwest Manufacturing purchased a three$-$year insurance policy for $$34,200$ on January $2,2024.$

Required:

Prepare any journal entries, adjusting journal entries, and closing journal entries required on January $2,2024,$ December $31,2024,$ and December $31,2025.$

Prepare the T$-$accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January $2,2024,$ balances in these accounts were $$0,$$$0,$$$86,000,$ and $$76,000,$ respectively.

$3-$a$.$ Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the balance sheet prepared on December $31,2024,$ and December $31,2025.$

$3-$b$.$ Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the income statement prepared on December $31,2024,$ and December $31,2025.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$

Req $3a$

Prepare the T$-$accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January $2,2024,$ balances in these accounts were $$0,$$$0,$$$86,000,$ and $$76,000,$ respectively.

Note: Post the transactions in the order of the journal entries answered in requirement $1.$

$\backslash$table$[[$Insurance Expense$],[$Debit$,$Credit$],[\frac{1}{2}\frac{?}{24}$