20. The failure to properly record an adjusting entry to accrue an expense will result in an: A. understatement of expenses and an understatement of liabilities. B. understatement of expenses and an overstatement of liabilities. C. understatement of expenses and an overstatement of assets. D. overstatement of expenses and an understatement of assets. 21. During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6.600. The adjusting entry for store supplies will A. increase net income by $22,200. B. increase expenses by $22,200. C. decrease supplies by $6,600. D. debit Accounts Payable for $6,600. 22. Frank Miller Company paid $33,000 on June 1, 2017, for a two-year insurance policy and recorded the entire as Insurance Expense. The December 31, 2017, adjusting entry includes: A. debit Insurance Expense and credit Prepaid Insurance, $9,625. B. debit Prepaid Insurance and credit Insurance Expense, $23,375. C. debit Prepaid Insurance and credit Insurance Expense, $9,625. D. debit Insurance Expense and credit Prepaid Insurance, $23,375. 23. In November and December 2017, Frank Caliendo Co., a newly organized magazine publisher, received $75,000 for 1,000 three-year subscriptions at $25 per year, starting with the January 2018 issue. Caliendo included the entire $75,000 as Subscriptions Revenue in its 2017 Income Statement. What amount should Caliendo Co. have reported for Subscriptions Revenue in its 2017 Income Statement? A. $75,000. B. $25,000 C. $4,166. D. $0. 75000 7 month