On June 1, Royal Corp, bdgan operating b service company with an initial cash investment by shareholders of $3,824,000. The company provided $6,400,000 of services in June and received full payment in July Royal also incurred expenses of $2,645,000 in Jube that were paid h August . During June, Royal paid its shareholders cash dividends 61 $490,000. What was the company's Income before income taxes for the two months ended July 31 under the following methods of accounting? Cash Basis a. $3,755,000 b. $7,579,000 C. $6,400,000 d. $6,400,000 Accrual Basis $3,755,000 $3,265,000 $3,755) boo $3,265,000 ces Multiple Choice Options Option Option Option On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $51,400. During 2021, $89,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded the balance in the prepaid insurance account was $43,500. Insurance expense for 2021 was: Multiple Choice 7 $140.400. $96.900 $7.900 o $89,000 The entry to record a sale on account would include: Multiple Choice Cash Accounts receivable Debit Credit No No Yes No Cash Sales revenue Debit Yes No Credit No 2 Yes Coedit Accounts receivable Sales revenue Debit Yes Yes No Sales revenue Cash Debit No Yes Credit Yes No Somerset Leasing received $57,600 for 2 months' rent in advance. How should Somerset record this transaction? Multiple Choice Salaries expense Salaries payable 57,600 57,600 Interest expense Interest payable 57,600 57,600 L Cash Deferred rent revenue 57,600 57,600 Prepaid rent Rent expense 57,600 57,600