[The following information applies to the questions displayed below.] A company makes the payment of a one-year insurance premium of $4,464 on March 1, 2016. value: 1.00 points Required information 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.) Balance Sheet Income Statement Assets Liabilities Net Income = Revenues EX + Stockholders' Equity (372) + Prepaid insurance (372)] = Prepaid insurance = (Insurance expenses 0 Insurance expense + Cash Insurance expenses Interest receivable Note receivable il model to show the amount of insurance premium "used" that month. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet ets Stockholders' Equity Net Income Liabilities (372) = Prepaid insurance Income Statement Revenues Expenses = Insurance expenses 0 - Insurance expenses (372) + 372 + a-1. Use the horizontal model to record the above transaction. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Inco Assets Liabilities Stockholders' Equity Net Income Revenues + + unts with + for increases and amounts with - for decreases.) neet Income Statement Liabilities Stockholders' Equity Net Income Revenues Expenses + + Cash Interest receivable Interest revenue Note receivable Prepaid insurance a-2. Write 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 Record the expiration of prepaid insurance each month. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2016 balance sheet with respect to this policy. Prepaid insurance d. If the premium had been $8,928 for a two-year period, how should the prepaid amount at December 31, 2016 be reported on the balance sheet? Non-current asset Current asset e. Prepaid expenses reflects as an asset for more meaningful net income amount. True False