22. Greiners Farmstand uses accrual accounting. In October the company purchased 1,000 pumpkins at a cost of $5 per pumpkin. During October the company sold 900 of the pumpkins for $20 per pumpkin. All customers paid for their pumpkins with cash. What amount of inventory should Greiners Farmstand report as of the end of October if the company had no beginning inventory that month? A. $0 on its income statement B. $0 on its balance sheet C. $500 on its income statement D. $500 on its balance sheet

28. On October 1, 2021 Besson Manufacturing paid a $24,000 insurance premium for liability coverage. The insurance policy covers the period October 1, 2021 through September 30, 2022. What amount of this transaction will the company include in insurance expense on its accrual-basis income statement for the year ended December 31, 2021? A. $24,000 B. $18,000 C. $6,000 D. $2,000

29. On October 1, 2021 Besson Manufacturing paid a $24,000 insurance premium for liability coverage. The insurance policy covers the period October 1, 2021 through September 30, 2022. What amount of prepaid insurance will the company record on its accrual-basis balance sheet as of December 31, 2022? A. $18,000 as a current asset B. $18,000 as a current liability C. $6,000 as a current asset D. $6,000 as a current liability