What are the explanations for the answers to these questions?

33) c

34) b

33. Information from L Corporation for the fiscal year ending October 31, 2017: Cash received from customers Revenue earned $300,000 390,000 170,000 Cash paid for expenses 50,000 Cash paid for computers on 10/01/2017 to be used for 3 years Expenses incurred including depreciation 240,000 Proceeds from a bank loan, partly used to pay for computers 100,000 Based on accrual accounting, what is L Corporation's net income for the year ending October 31, 2017? a. $220,000 b. $180,000 c. $150,000 d. $130,000 34. At December 31, 2017, before year-end adjustments, Janus Company's Prepaid Insurance had a balance of $2,400. The one-year insurance policy had been purchased on September 1, 2017. The 12/31/17 figure for Prepaid Insurance should be: a. $800. b. $1,600. c. $2,400. d. $3,200