a. Prepaid Insurance shows a balance of zero at September 30, but insurance Expense shows a debit balance of $2,340, representing the cost of a three-year fire insurance policy purchased on September 1 of the current year. b. On August 31 of this year, Cash was debited and Service Revenue was credited for $1.500 The $1,500 related to fees for a three month period beginning September 1 of the current year. c The company's income tax rate is 20%. After making the above adjustments, SPC's net income before tax is $10,000 No income tax has been paid or recorded. View transaction list Journal entry worksheet 2 3 Record the adjusting entry for Insurance expense of $2,340 representing the cost of a three-year fire insurance policy that was purchased on September 1 of the current year. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 3 > Record the adjusting entry for $1,500 received on August 31 of this year and credited to service revenue relating to fees for a three-month period beginning September 1 of the current year. Note: Enter debits before credits. General Journal Transaction b Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2. 3 Record the adjusting entry for income tax of 20% on net income before tax of $10,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal