Exercise 3-16 Aaron Lynch Company has the following balances in selected accounts on December 31, 2017. Service Revenue $40,000 Insurance Expense 3,660 Supplies Expense 2,300 All the accounts have normal balances. Aaron Lynch Company debits prepayments to expense accounts when paid, and credits unearned revenues to revenue accounts when received. The following information below has been gathered at December 31, 2017. 1. Aaron Lynch Company paid $3,660 for 12 months of insurance coverage on June 1, 2017. 2. On December 1, 2017, Aaron Lynch Company collected $40,000 for consulting services to be performed from December 1, 2017, through March 31, 2018. 3. A count of supplies on December 31, 2017, indicates that supplies of $700 are on hand.