My accounting professor said the correct option is C. $379,000. Her calculation was $390,000 - $31,000 + $29,000 - $9,000 = $379,000.

Please explain why didn't my professor also subtract $12,000 Accrued Expenses and add $7,000 Earned Rent Revenue to get option B. $374,000. Explain any concepts necessary for this question.

On December 31, 2016, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $31,000. Accrued sales revenue: $29,000. Accrued expenses: $12,000. Used insurance: $9,000; the insurance was initially recorded as prepaid. Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. If Krug Company reported total assets of $390,000 prior to the adjusting entries, how much are Krug's total assets after the adjusting entries?

A. $386,000. B. $374,000. C. $379,000. D. $350,000. E. None of the above