27) An adjusting journal entry contains a debit to an expense account and a credit to a contra account. This is an example of a(n). a. Depreciation expense b. Accrued revenue c. Deferred revenue d. Accrued expense 28) On October 1, McReady Company paid six months' insurance in advance totaling $7,800. The policy begins on October 1. An adjusted trial balance prepared on December 31 would include a balance in the Prepaid Insurance account of: a. $0 b. $2600 c. $7800 d. $3900