27. State whether each of the following statements is true or false. Explain the true statements and discuss why the false statements are false. a. A debit always results in increasing the balance...

27. State whether each of the following statements is true or false. Explain the true statements and discuss why the false statements are false.

a. A debit always results in increasing the balance in an account.

b. As expenses increase, the equity of an entity will decrease.

c. Posting is the process of copying information from ledgers to journals.

28. A business keeps its accounts on a calendar-year basis. On January 1, 2013, there is a balance of $2,800 in the Prepaid insurance account. The insurance represented by that amount expires on March 31, 2013, but the business makes no entry to record the expiration of the insurance until its year-end. On April 1, 2013, the business pays $16,000 for an insurance policy covering the period April 1, 2013 - March 31, 2014. Prepare the journal entry at December 31, 2013, to record the full amount of insurance expense for the year.