On January 1, Donkey Inc. paid $30,000 for insurance for January, February and March. On January 31, unadjusted balances for Prepaid Insurance and Insurance Expense were $30,000 and $0, respectively. Based on this information, (1) analyze the accounting equation effects of the adjustment required on January 31, (2) record the adjusting journal entry, and (3) summarize the effects of the adjusting journal entry in the T-accounts shown below.

Analyze Stockholder's Equity Assets Liabilities + Journalize Debit Credit Effect Debit Credit Debit Credit Debit Credit Debit Credit