Accounting HW Question Please Help with Steps and Explanation 10 Points!?

Debit Insurance $36000 Credit Bank $36000

Dec
Insurance Account Credit p/l 27000 Balance c/f 9000
these then go debit p/l 27000 insurance paid
Creditor Balance sheet $9000 Insurance prepaid
This all assumes you start from zero It also assumes you pay a year in advance

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RE :Accounting HW Question Please Help with Steps and Explanation 10 Points!?
1) Mountaineer Excavation purchases one year of flood insurance in advance on March 1, paying $36,000 ($3,000/month). Record the purchase of insurance.

2)Mountaineer purchases one year of flood insurance in advance on March 1, paying $36,000 ($3,000/month). Record the adjusting entry.
December 31

3)Calculate the year-end adjusted balances of Prepaid Insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0).

*Dont just say read about it and stuff I am looking for a step by step example to show me why that is the case.
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