After all account balances have been transferred from the Adjusted Trial Balance section of the worksheet to the financial statement sections, the Income Statement section of the worksheet includes the following totals. The Credit column total is $120,000 and the total of the Debit column is $80,000. The Income Statement section of the worksheet: Multiple Choice

is now complete.

would be completed by entering $40,000 in the Credit column with the words Net Income in the Account Name column.

would be completed by entering $40,000 in the Debit column with the words Net Income in the Account Name column.

The book value of long-term assets is reported on: Multiple Choice

the balance sheet.

the worksheet.

the income statement.

the statement of owner's equity.

The adjusting entry to account for use of prepaid insurance consists of: Multiple Choice

a debit to Insurance Expense and a credit to Cash.

a debit to Insurance Expense and a credit to Accumulated Depreciation.

a debit to Insurance Expense and a credit to Prepaid Insurance.

a debit to Prepaid Insurance and a credit to Accumulated Depreciation.