11.
These graphs show the capital and consumer goods produced by two nations.
According to the graphs above, assume that two nations are spending equal time producing capital and consumer goods. If they decide to specialize in the good in which each has comparative advantage, an additional

15 units of consumer goods and 30 units of capital goods could be produced.

100 units of consumer goods and 80 units of capital goods could be produced.

70 units of consumer goods and 65 units of capital goods could be produced.

30 units of consumer goods and 15 units of capital goods could be produced.

80 units of consumer goods and 100 units of capital goods could be produced.

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.