Mountaineer Excavation operates in a low$-$lying area that is subject to heavy rains and flooding. Because of this, Mountaineer purchases one year of flood insurance in advance on March $1,$ paying $$36,000($$$3,000/$month$).$

Required:

$1.$&$2.$ Record the necessary entries in the Journal Entry Worksheet below.

$3.$ Calculate the year$-$end adjusted balances of Prepaid Insurance and Insurance Expense $($assuming the balance of Prepaid Insurance at the beginning of the year is $$0).$