QS 3-4 Preparing adjusting entries (annual)prepaid expense 404 July 1, 2020 Dec. 31, 2020 Jan. Mar. May Sept. Nov. Jan. Mar. May July Sept. Nov. July 444 Feb. Apr. Oct. Dec. Feb. Apr. Oct. Dec. June Aug. 2020 June Aug. 2021 Insurance coverage July 1, 2020 to June 30, 2021 e Stud Muffin Bakery prepares financial statements on an annual basis and has a December 31, 2020 year-end. On July 1, 2020, the bakery purchased a one-year insurance policy for $12,000 cash. The insurance policy covers July 1, 2020 to June 30, 2021. a. How much does the insurance policy cost per month? b. How many months are between July 1, 2020 and December 31, 2020? c. Record the journal entry on July 1, 2020. d. In order to prepare the annual financial statements, record the adjusting journal entry on December 31, 2020. QS 3-6 Preparing adjusting entries (annual)-prepaid expense 404 Kiss the Chef Co., a cooking school, purchased a two-year insurance policy on April 1, 2020, paying cash of $7,680. Its year-end is December 31. a. Record the journal entry on April 1, 2020. b. How many months are between April 1, 2020 and December 31, 2020? Record the adjusting entry on December 31, 2020. c. How many months are between January 1, 2021 and December 31, 2021? Record the adjusting entry on December 31, 2021. d. How many months of the insurance policy are left in 2022