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Busy Bee Company's financial statements show the following:
Insurance expense.........$8,000
Prepaid insurance:
Beginning-of-year.....$1,000
End-of-year...........$4,000
The amount of cash paid for insurance during the year was:
A $3,000
B $5,000
C $11,000
D $13,000
Annual depreciation expense on the equipment is 32,000 What are the adjusted journal entries and T-accounts? And please explain why
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