Answer and Explanation:
The journal entries are shown below:
On July 1
Prepaid Insurance $24,900 Â
   To Cash $24,900
(being the prepaid insurance is recorded)
Here prepaid insurance is debited as it increased the assets and cash is credited as it decreased the assets Â
On Dec 31
Insurance expense $4,150  ($24,900 ×6 ÷ 36)
    To Prepaid Insurance $4,150
(being insurance expense is recorded)
The insurance expense is debited as it increased the expenses and credited the prepaid insurance as it decreased the assets Â
