a) The owner of a business reviews the income statement prepared by you and asks, 'Why do you report a profit of only $30 000 when cash collections of $100 000 were received and cash payments for the period totalled only $50 000 for expenses? How would you respond to the owner's question? b) Provide the Journal entry for the following adjustments: 1. Portion of prepaid insurance which has now expired (been used up) 2. Revenue earned but not yet received 3. Insurance expense which has not been used up there is still future cover) 4. Portion of recognised revenue which is considered unearned 5. Expenses incurred but not yet paid 6. Revenue received in advance which is now earned