Required:

Prepare any journal entries, adjusting journal entries, and closing journal entries required on January $2,2024,$ December $31,2024,$ and December $31,2025.$

Prepare the T$-$accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January $2,2024,$ balances in these accounts were $$0,$$$0,$$$86,000,$ and $$76,000,$ respectively.

$3-$a$.$ Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the balance sheet prepared on December $31,2024,$ and December $31,2025.$

$3-$b$.$ Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the income statement prepared on December $31,2024,$ and December $31,2025.$

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

Req $1$

Prepare any journal entries, adjusting journal entries, and closing journal entries required on January $2,2024,$ December $31,2024,$ and December $31,2025.$

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field.

Journal entry worksheet

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Record the adjusting entry for insurance used during the year $($the company purchased a three year insurance policy for $$34,200$ on January $2,2024).$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,,,],[,,,],[,,,],[,,,],[,,,]]$