On August 1, 2021, XYZ purchased a 2 year fire insurance policy from HIJ Company for $24,000.

Copy the entire question(1, 2 and 3) along with the tables below to answer in the same format.

1.) Prepare the adjusting entry for HIJ on 12/31/21 if the original entry was recorded to a temporary account and no additional entries have been made for the year associated with this transaction.

2.) Prepare the adjusting entry for HIJ on 12/31/21 if the original entry was recorded to a permanent account and no additional entries have been made for the year associated with this transaction.

3.) Prepare the adjusting entry if the unadjusted trial balance for XYZ as of 12/31/21 shows a balance of $17,000 in prepaid insurance. If no adjusting entry is required, write no entry required.