On April 1, 2018, ABC Company purchased a two-year insurance policy from Vantage Insurance, Inc. for $7,200. Indicate if each of the following statements is true or false:

ABC Company will report insurance expense of $2,700 in its 2019 income statement

ABC Company will report prepaid insurance of $3,600 as a current assets in its December 31, 2018 balance sheet

Vantage Insurance, Inc. will report unearned revenue of $2,700 as a current liability in its December 31, 2018 balance sheet

The adjusting entry made by Vantage Insurance, Inc. at December 31, 2018 relating to this insurance policy results in a $4,500 increase in their equity

The adjusting entry made by ABC Company at December 31, 2018 relating to this insurance policy results in a $2,700 decrease in their assets