Required:

a$.1.$ Use the horizontal model to record the payment of a one$-$year insurance premium of $$9,000$ on May $1,2022.$

$2.$ Prepare the journal entry to record the payment of a one$-$year insurance premium of $$9,000$ on May $1,2022.$

b$.1.$ Use the horizontal model that will be made at the end of every month to show the amount of insurance premium "used" that month.

$2.$ Prepare the adjusting entry that will be made at the end of every month to show the amount of insurance premium "used" that month.

c$.$ Calculate the amount of prepaid insurance that should be reported on the December $31,2022,$ balance sheet with respect to this policy.

Answer is

Complete this question by entering your answers in the tabs below.

Required A$1$

Required A$2$

Required B$1$

Required B$2$

Required C

Use the horizontal model to record the payment of a one$-$year insurance premium of $$9,000$ on May $1,2022$

Note: Enter decreases to account balances with a minus sign.

$\backslash$table$[[\backslash$table$[[$Balance Sheet$],[$Liabilities$]]],[$Assets$,=,$Lia,$+,$Stockholders' Equity$],[$Cash$,,=,$Interest receivable,$+,],[$Prepaid insurance,$9,000,=,,+,]]$