19.

Assume Idaho Company recorded the following adjusting journal entry at year-end:

Insurance expense	$3,000
Prepaid insurance			$3,000

If the beginning balance in prepaid insurance was $500, and $7,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?

• $7,200.

• $5,200.

• $4,700.

• $5,000.

14.

On December 31, 2019, Krug Company prepared adjusting entries that included the following items:

Depreciation expense: $41,000.

Accrued sales revenue: $27,000.

Accrued expenses: $28,000.

Used insurance: $7,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $5,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

If Krug Company reported total assets of $390,000 prior to the adjusting entries, how much are Krug's total assets after the adjusting entries?

Multiple Choice

• $342,000.

• $378,000.

• $369,000.

• $374,000.

7.

On January 1, 2019, the general ledger of Global Corporation included supplies of $1,000. During 2019, supplies purchased amounted to $5,000. A physical count of inventory on hand at December 31, 2019 determined that the amount of supplies on hand was $1,200. How much is the supplies expense for year 2019?

Multiple Choice

• $6,000.

• $5,200.

• $4,800.

• $1,000.