Adams and Adams, Inc. (AA), a law firm prepares ANNUAL financial statements at December 31 each year. The following questions relate to the adjusting entries recorded at December 31, 2013. AA rents storage space for documents from another company. The annual rent payment for the current year of $2,000 had not been paid at December 31, 2013. The adjusting entry (if necessary) will: A. Increase (credit) Rent Revenue by $2,000 B. Increase (debit) Rent Receivable by $2,000 C. No adjusting entry in necessary D. Increase (credit) Rent Payable by $2,000 E. Decrease (debit) Contributed capital by $2,000 Adams and Adams, Inc. (AA), a law firm prepares ANNUAL financial statements at December 31 each year. The following questions relate to the adjusting entries recorded at December 31, 2013. AA bought a 2-year insurance policy for $1, 200 on November 1, 2013. The amount was recorded in the Prepaid Insurance account. How much Insurance Expense will AA report for 2013? A. None B. $200 C. $1, 100 D. $1,000 E. $100