Consider the following transactions for UpFront Corporation. April 1 Paid cash for one-year policy, $18,000. Dec 31 Unexpired/unused premiums on the insurance policy amounted to $4,500.

Requirements: 1. Prepare journal entries to record the above transactions. 2. prepare a T-account for Prepaid Insurance, post any entries that affect the account, and tally the ending balance for the account (assume Prepaid Insurance beginning balance of $9,000).