I have a question about #35. The answer is a. I don't know why. Can you please explain to me? Thanks!

Learning Goals 1-6, continued 32. At year end the accountant for Burmark Company forgot to make the adjusting entry for prepaid insurance that expired during the year. This error will result in Assets Liabilities overstated overstated Net Income boverstated no effect understated no effect overstated verstated d no effect understated understated 33. Oakland Enterprises rents computer equipment at a cost of $3,000 per month. The rental fee is paid overstated on the 20th of each month. The year end adjustment on June 30 is: debit, Rent Expense 53.000 credit. Cash $3,000. b debit, Rent Expense $2.000 credit, Rent Payable $2.000, debit, Rent Expense 51.000, credit, Rent Payable $1,000 d. none of the above 34. The Susan Lee law firm provided 30 hours of legal consultation services to Dave Philips at the rate of $175 per hour. As of June 30, fiscal year end, $2,500 had been billed to Mr. Philips and correctly recorded. What adjustment is required on June 302 a. Accounts Receivable 2,500 Legal Fees Earned 2,500 b. Accounts Receivable 5,200 Legal Fees Earned 5.200 c. Accounts Receivable 2,750 Legal Fees Earned 2.750 d. none of the above 35. Bristol Partnership shows the ledger account balances that you see below, on the dates indicated. No rent was prepaid in 2017. Account Name December 31, 2016 December 31, 2017 Prepaid Rent $5,500 -0- Rent Expense $15,000 $17.000 The amount of cash paid for rent expense in 2017 is. a. The December 31, 2016 prepaid rent amount is used up in 2017 and becomes a non-cash expense in 2017. The cash paid for rent expense in 2017 is $17,000 - $5,500 = $11,500. b. $17,000. c. $20,000. d. none of the above. 36. On April 1, Otero Company loaned $10,000 to an important customer. Monthly interest payments from the borrower are $100 per month payable on the first of each month. The adjusting entry on December 31. year end, is: a. debit, Interest Receivable 5100: credit. Interest Earned $100. b. debit, Cash $100. credit, Interest Earned $100 c debit, Interest Earned $100 credit. Interest Receivable $100 d. no adjusting entry is needed. 37. An adjusted trial balance should be prepared: a. before the adjusting entries and the financial statements are prepared. b. after the adjusting entries and the financial statements are prepared. after the adjusting entries and before the financial statements are prepared. d. may be prepared at any time