Assume that apples cost $0.50 in 2005, $1 in 2006, and $1.5 in 2007, whereas oranges cost $1 in 2005, $0.50 in 2006, and $1 in 2007. Suppose that 10 apples and 5 oranges were produced in 2005, 5 apples and 10 oranges were produced in 2006, and 6 apples and 11 oranges were produced in 2007. Calculate the CPI for 2005, 2006 and 2007, using 2005 as the base year. Calculate inflation between 2005 and 2006 and between 2006 and 2007.

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.