QUESTION 14 On March 1, Spammie Co. paid $3,120 in advance for four month's insurance. If Spammie adjusts its books monthly, Spammie would have to make an adjusting entry at March 31 which includes a debit to Prepaid Insurance and a a credit to insurance expense in the amount of $780. True False QUESTION 15 2.85 The realization principle states that activities of an entity should be kept separate from those of its owners. True False rue 2.8571 p. QUESTION 16 An $8,000 debit to Accounts Payable could correspond to a payment to a supplier. True False