You have been assigned to the audit of Southwest Philly Sports (Southwest) for the year ended December 31, 2016. In auditing the prepaid insurance account, you note that on July 1, 2016 Southwest paid $36,000 to purchase a 3-year property and liability insurance policy on its facility. The policy period began on July 1, 2016 and ends on June 30, 2019. As part of your work you examined the policy and the related purchase voucher and you are satisfied with the amount paid and the term of the policy. The account analysis provided to you by the client shows the balance in the prepaid insurance account at December 31, 2016 for this policy is $36,000. Required: Is the balance in the Prepaid Insurance account correct at December 31, 2016? What adjusting journal entry, if any, would you propose for this situation