QUESTION 1 On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaide Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is Debit Prepaid Insurance, $1,800, credit Cash, $1,800. Debit Prepaid Insurance, $1,440, credit Insurance Expense, $1,440. Debit Prepaid Insurance, $360; credit Insurance Expense, $360. Debit Insurance Expense, $360; credit Prepaid Insurance, $360 O Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440. QUESTION 2 The Retained earnings account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000, what is the ending balance in the Retained earnings account after all closing entries are made? O $37,000. $35,400. $43,400 $28,000. $52,400