Tom's Tax Service uses accrual accounting and issues monthly financial statements. On October 1. 2020, the tax service pays $24,000 cash for a one-year insurance policy. How does Tom's Tax Services required adjusting entry at October 31, 2020, affect the balance sheet equation Decreases assets by $2.000 and has no effect on stockholders equity Decreases assets by $2.000 and decreases stockholders equity by $2.000 Decreases assets by $2,000 and decreases liabilities by $2,000 O Decreases one asset by $2,000 and increases another asset by $2.000 Question 33 2 pts Darling Company uses accrual accounting and issues monthly financial statements. On October 1, 2020, the company's records show a $200 balance in the Supplies account. During October 2020, Darling purchased $750 of supplies and used $800 of supplies. If no adjusting entry is prepared at October 31, 2020, stockholders' equity will be overstated by $800. O assets will be overstated by $150. net income will be understated by $800. O expenses will be understated by $750 Rolly Company uses accrual accounting and issues monthly financial statements. On September 1 2020, Rolly Company borrows $30.000 and signs a two-year, 6% note. Total interest on the note is $3,600. Rolly Company's required entry at September 1, 2020, includes O a $30.000 increase in liabilities. O a $3.600 increase in stockholders' equity, O a $33,600 increase in liabilities. O a $33,600 increase in assets. Question 31 2 pts Which item below is a true statement? O An unearned revenue adjustment increases assets and stockholders' equity. O A prepaid expense adjustment increases liabilities and decreases stockholders' equity. An unearned revenue adjustment increases assets and stockholders' equity. An accrued revenue adjustment increases assets and stockholders equity