1. SHOW YOUR WORK. Assume Idaho Company recorded the following adjusting journal entry at year-end: Insurance expense Prepaid insurance $2,000 $2,000 If the beginning balance in prepaid insurance was $500, and $2,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry? A. $1,200 B. $700 C. $2,200 D. S1,000 2. SHOW YOUR WORK. On July 1, 2019, P.J. Inc. signed a $100,000, one-year, 6 percent note payable. At due date, June 30, 2020, the principal and interest will be paid. The interest expense reported on the income statement (for the year ended December 31, 2019) is: A. $6,000 B. $3,000 C. S1,500 D. S1,200