For question a, why should I credit expense

Service Pro Corp (SPC) is preparing adjustments for its September 30 year-end. For the following transactions and events, show the September 30 adjusting entries that SPC would make. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $2,268, representing the cost of a three-year fire insurance policy that was purchased on b. On August 31 of this year, Cash was debited and Service Revenue was credited for $1,440. The $1,440 C. The company's income tax rate is 26%. After making the above adjustments, SPC's net income before September 1 of the current year related to fees for a three-month period beginning September 1 of the current year. tax is $10,000. No income tax has been paid or recorded. View transaction list Journal entry worksheet 3 Record the adjusting entry for Insurance expense of $2,268 representing the cost of a three- year fire insurance policy that was purchased on September 1 of the current year. Note: Enter debits before credits. Transaction General Journal Debit Credit aPrepaid Insurance 2,205 Insurance Expense 2,205 Record entry Clear entry View general journal