Crescendo Publishers publishes The Accountant magazine and sells one-year subscriptions to its customers. On November 1,2019 , the company prepays an annual insurance policy of $15,000, covering the period of 11/1/201910/31/2020. How much Insurance Expense should the company recognize for the period ended December 31, 2019? Assume the company uses an annual accounting period and makes all adjusting entries on December 31st. $0. $1,250. $2,500. $12,500. $15,000. Suppose that on 2/1/18, She's A Star had a beginning balance in its Deferred Revenue account of $800 and on 2/28/18, the ending balance in Deferred Revenue account is $1,200. When the balance of the Deferred Revenue account increases during an accounting period, which of the following must be true: Revenues recognized exceed cash collections from customers. Expenses recognized exceed cash collections from customers. Revenues recognized are less than cash collections from customers. Expenses recognized are less than cash collections from customers. Accrual-basis net income is less than cash-basis net income. On May 1, 2020, Lose Control purchases equipment for $27,600 in cash. The equipment has an expected useful life of five years and has no salvage value. The firm uses straight-line depreciation method. What adjusting entry should the company record on December 31, 2020? Assume the company uses an annual accounting period and makes all adjusting entries on December 31st. Debit Depreciation Expense and credit Accumulated Depreciation for $3,680. Debit Depreciation Expense and credit Equipment for $5,520. Debit Depreciation Expense and credit Accumulated Depreciation for $5,520. Debit Depreciation Expense and credit Cash for $27,600. None of the answers given are correct. On December 31, 2019, Frozen Britain Company prepared adjusting entries that included the following items: -Depreciation expense: $5,000. -Accrued service revenue: $39,000. -Accrued expenses: $12,000. -Supplies used: $9,000; the supplies were initially recorded as an asset and debited to the Supplies account. -Service revenue earned: $7,000; the cash was initially prepaid by customers and credited to deferred revenue If Frozen Britain reported net income of $120,000 prior to th adjusting entries, how much is the firm's net income after the adjusting entries? $192,000. $140,000. $48,000. $166,000