On January 1st, a company received advanced membership payments of $300 from a customer for the next 6 months. The membership is in effect immediately. By how much would the company's equity have changed by March 31st?

a) $50

b) $300

c) $0

d) $150

e) None of the choices listed

Which of the following is the correct journal entry to record one month of expired prepaid insurance?

a) Increase prepaid insurance and decrease cash

b) Increase insurance expense and decrease cash

c) Increase prepaid insurance and decrease insurance expense

d) Increase insurance expense and decrease prepaid insurance

e) None of the choices listed