[The following information applies to the questions displayed below.] A company makes the payment of a one-year insurance premium of $4,368 on March 1, 2019. a-1. Use the horizontal model to record the above transaction. (Use amounts with + for increases and amounts with - for decreases.) Assets Balance Sheet Liabilities Stockholders' Equity Net Income 1 amounts with - for decreases.) Stockholders' Equity Net Income Revenues Income Statement Expenses a-2. Prepare the journal entry to record the above transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Record the payment of a one-year insurance premium. Note: Enter debits before credits. Date Mar 01 General Journal Debit Credit Record entry Clear entry View general journal b-1. Use the horizontal model to show the amount of insurance premium "used" that month. (Use amounts with + for increases and amounts with-for decreases.) Assets Balance Sheet Liabilities Stockholders' Equity- Net Income Income Statement Revenues isurance premium "used" that month. (Use amounts with + for increases and abilities Stockholders' Equity Net Income Income Statement Revenues Expenses b-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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Record the expiration of prepaid insurance each month. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2019, balance sheet with respect to this policy. Prepaid insurance d. If the premium had been $8,736 for a two-year period, how should the prepaid amount at December 31, 2019, be reported on the balance sheet? Non-current asset Current asset e. Accounting for prepaid expenses achieves a better matching of revenues and expenses and yields a more meaningful measure of net income. True or False True False