The following statement that reports assets, liabilities, and stockholders' equity is the

Group of answer choices

Retained Earnings Statement

Income Statement

Balance Sheet

Statement of Cash Flows

On January 1, Simple, Inc. bought a 4 year insurance policy for $8,000. What would be the journal entry to record this purchase?

Group of answer choices

Debit Accounts Payable for $8,000 and credit Insurance Expense for $8,000

Debit Prepaid Expenses for $8,000 and credit Cash for $8,000

Debit Prepaid Expenses for $2,000 and credit Cash for $2,000

Debit Insurance Expenses for $8,000 and credit Cash for $8,000