P9.1.1 Adjusting Entry Prepaid Insurance At January 31, 2022 Cy needs to update his accounts before preparing financial statements to review Mookie The Beagle Concierge performance for its first month of operations. Cy has asked for your assistance in preparing the adjusting entries. Mookie The Beagle Concierge will be using the accrual basis of accounting. In January, Mookie The Beagle Concierge purchased $600 of liability insurance to cover a 3-month period. So at the end of the accounting period on January 31, 1 month of rent had expired @ $200 ($600/3 months = $200 per month). The 2 months of unexpired rent is Prepaid Expenses: Insurance, an asset account with future benefit. Since Mookie The Beagle Concierge recorded the entire $600 as Insurance: Liability Insurance Expense, an adjusting entry is needed to bring accounts up to date at January 31. 1. Complete the following table. Account Insurance: Liability Insurance Expense Account Type Increase or Decrease? Debit or Credit? Amount Expense Prepaid Expenses: Insurance Asset 2. Plan Adjusting Journal Entry. a. Complete the following to plan the adjusting journal entry to enter in QBO Journal Entry ACCOUNT 9917 B