Midwest Manufacturing purchased a three-year insurance policy for $30,000 on January 2, 2018.

Required:

1. 1. Prepare any journal entries, adjusting journal entries, and closing journal entries required on January 2, 2018, December 31, 2018, and December 31, 2019.

2. 2. Prepare the T-accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January 2, 2018, balances in these accounts were $0, $0, $90,000, and $80,000, respectively.

3. 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, 2018, and December 31, 2019.

4. 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, 2018, and December 31, 2019.

1)2)

3-a)

3-b)

Prepare any journal entries, adjusting journal entries, and closing journal entries required on January 2, 2018, December 31, 2018, and December 31, 2019. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date No General Journal Debit Credit 1 Jan 02, 2018 No Transaction Recorded Req 2 Req 1 Prepare the T-accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January 2, 2018, balances in these accounts were $0, $0, $90,000, and $80,000, respectively. (Post the transactions in the order of the journal entries answered in requirement 1.) Insurance Expense Prepaid Insurance 1/2/18 1/2/18 12/31/18 12/31/18 12/31/19 12/31/19 Retained Earnings Cash 1/2/18 1/2/18 12/31/18 12/31/18 0 0 12/31/19 12/31/19 Req 1 Req 2 Req 3a Req 3b 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, 2018, and December 31, 2019. 12/31/2019 Partial Balance Sheet 12/31/2018 Assets Stockholders' Equity 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, 2018, and December 31, 2019 12/31/2018 Partial Income statement 12/31/2019