Perfect image company paid $54,000 on July 1, 2009, for a five-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment perfect image will make to properly report expenses when preparing the December 31, 2009, financial statements. (Assume no previous adjustments to prepaid Insurance have been made). Use parentheses or a minus sign when entering account decreases. (Use only the necessary input lines).

Please see the attached picture.

Under each account tab there are a total of six options:

1) Cash

2) Ins. Expense

3) Inventory

4) Prepaid ins.

5) Rent expense

6) Revenue