the answer is b

why i do not need to add 7000 to the assets?

19. On December 31, 2014, Krug Company reported total assets of $390,000 prior to the following adjusting entries: Depreciation expense was $31,000 Service revenues on account were eamed but not yet recorded for a total of $29,000. Expenses incurred but not yet recorded and not yet paid totaled S12,000. Used insurance: $9,000; the insurance was initially recorded as prepaid. Rent revenue eamed: $7,000; the rent was initially prepaid by the tenant and credited to uneamed rent revenue. Howmach are King'stotal asces afer adjustng entries? A) $386,000. B) $379,000. C$374,000. D $350,000