1. beginning common stock balance is $40,000 retained earnings balance is $50,000, investments through stock issuances are $20,000, net income is $30,000, and devidends are $10,000. What is total ending equaity?

2. What journal entry does a company normally make to record payment of cash for future insurance coverage?

a. Debits Cash and credits insurance expense.

b. debits insurance expense and credits cash.

c. debits insurance expense and credits prepaid insurance.

d. debits prepaid insurance and credits cash.