the 22. On April 1. a $4,800 premium on a one-year insurance policy on equipment was paid and charged to Prepaid Insurance end of the annual accounting period, December 31", the financial statements would report: a. Insurance Expense, $3,600; Prepaid Insurance $1,200. b. Insurance Expense, $3,650; Prepaid Insurance $4,800. c. Insurance Expense, $4,800; Prepaid Insurance $0. d. Insurance Expense, $1,200; Prepaid Insurance $3,600. 23. When a company owes employee salaries at the end of the period but fails to make an adjusting entry for that amount owed. which of the following is true? a. Net income in the income statement is overstated, b. Retained earnings in the statement of stockholders' equity is overstated. c. Total stockholders' equity in the balance sheet is overstated. d. All of the above. July 11,000 units S ? 24. The following data pertains to activity and costs for two months: June Activity level in units 10,000 units Direct materials $17,000 Fixed factory rent 21,000 Other production costs 20,000 Total cost $58,000 $61,300 Assuming that these activity levels are within the relevant range, the 'Other production costs' for July were a. $19,500 b. $20,000 c. $21,600 d. $22,000 e. None of the above. 25. Fixed costs expressed on a per unit basis: a decrease with increases in activity b. increase with increases in activity. c. are not affected by activity. d. should be ignored in making decisions since they cannot change