ABC INC. Trial Balance December 31, 2008 DR CR Cash Accounts Reccivable Prepaid Insurance Equipment Accumulated Depreciation - Equipment Unearned Revenue Notes Payable Retained Earnings Common Stock Fee Revenue Salaries Expense Supplics Expense Interest Expense S 28,400 12,500 7,200 25,000 S 800 6,000 7,950 5,000 29,000 39,000 13,200 950 500 On May 1, 2008, ABC Inc. paid for $7,200 for a one year insurance policy. The adjusting entry on December 31, 2008 is a: a. debit to Insurance Expense and a credit to Cash b. debit to Insurance Expense and a credit to Prepaid Insurance c. debit to Prepaid Insurance and a credit to Cash d. debit to Prepaid Insurance and a credit to Insurance Expense e. none of the above Refer to the previous question. The amount of the entry is: On December 1, 2008, ABC received $6,000 in advance for services to be performed over the next 12 months. The adjusting entry on December 31, 2008 is a: a. debit to Cash and a credit to Unearned Revenue b. debit to Fec Revenue and a credit to Unearned Revenue c. debit to Unearned Revenue and a credit to Cash d. debit to Unearned Revenue and a credit to Fec Revenue e. None of the above Refer to the previous question. The amount of the adjusting entry is