QS 3-4 Preparing adjusting entries (annual)-prepaid expense L04 My 1, 2020 Dec. 31. 2020 Mar May July Sept. lan Mar. May Sept. Nov. F line Aug 2020 Oet Des Feb Apr Aug 2021 Oct Dee Boy 1. 2000 2001 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 cov ers 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, 20207 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