Question 2 (1 point) Rathbone Corp. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $1,100,000 at December 31, 2013 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $325,000 at December 31, 2013. Service contracts still outstanding at December 31, 2013 expire as follows: $170,000 During 2014 During 2015 250,000 During 2016 110,000 What amount should be reported as Unearned Service Revenues on Rathbone's December 31, 2013 statement of financial position? a) $775,000 b) $530,000 c) $325,000 d)$250,000 Question 3 (1 point) On December 1, 2013, Flynn Consulting paid $18,000 for a three-year insurance policy (December 1, 2013 to November 30, 2016) and debited the entire amount to insurance expense. The December 31, 2013 required adjusting entry in connection with this policy would be a) debit prepaid insurance and credit insurance expense $500. b)debit insurance expense and credit prepaid insurance $500. c) debit insurance expense and credit prepaid insurance $17,500. d) debit prepaid insurance and credit insurance expense $17,500