On April 1, 2014, a company paid $1,440 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2014?

a. $360.00

b. $40.00

c. $1,440.00

d. $1,080.00

e. $480.00

On April 30, 2014, a three-year insurance policy was purchased for $18,360 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31, 2014?

a. $18,360

b. $4,080

c. $510.00

d. $6,120

e. $14,280

The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $800. The Adjustments columns show that $450 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

a.$450 debit

b. $350 debit

c. $350 credit

d. $800 debit

e.$800 credit

(INCLUDE THE EXPLANATION)