Need help on the two questions under the title Assignment. Thank you

Felipe Estrella, the newly-hired Claims Manager of the Automobile Division of Jupiter Insurance Company, was puzzled. On his desk lay two documents. One was the monthly Claims Paid Report for March (Exhibit 1), which showed the total claims paid to beneficiaries for the month by Jupiter's recently-established Automobile Division. The other was the division's March income statement (Exhibit 2), which showed claims expenses. For some reason, the claims expenses shown on the income statement were much greater than total claims paid on the Claims Paid Report. As far as Mr. Estrella was concerned, however, the payment of a claim was an expense, so there should be no difference between the two numbers. Yet there it was. He was certain he would be asked about the difference at the monthly meeting of division managers, and resolved to figure it out as best he could before the meeting. As part of his analysis, Mr. Estrella had his secretary bring him a detailed listing of claims. This information is shown in Exhibit 3. Assignment 1. Reconcile the differences between the Claims Paid Report and the income statement. Try to do so using T accounts to record the various items in summary form. Some of these T accounts will be income statement accounts and some will be balance sheet accounts. 2. What should Mr. Estrella say at the meeting if he is asked about the difference between the two amounts? As part of your analysis, be sure to comment on the two notes at the bottom of Exhibit 2, as well as the accounting principles that are at work at Jupiter. JUPITER INSURANCE COMPANY Exhibit 3. Claim Details for the Automobile Division for March \begin{tabular}{|c|c|c|c|c|} \hline Claim\# & Date Received & Date Paid & Amount & Subtotal \\ \hline 930250 & February 16 & March 1 & $3,000 & \\ \hline 930253 & February 17 & March 3 & 800 & \\ \hline 930254 & February 18 & March 4 & 1,900 & \\ \hline 930255 & February 19 & March 5 & 1,800 & \\ \hline 930256 & February 19 & March 6 & 300 & \\ \hline 930257 & February 20 & March 7 & 1,500 & \\ \hline 930258 & February 24 & March 10 & 1,400 & \\ \hline 930259 & February 27 & March 13 & 1,350 & \\ \hline \multicolumn{4}{|c|}{ February Subtotal } & $12,050 \\ \hline 930301 & March 3 & March 17 & $3,000 & \\ \hline 930302 & March 5 & March 19 & 6,500 & \\ \hline 930303 & March 8 & March 22 & 1,200 & \\ \hline 930304 & March 8 & March 23 & 500 & \\ \hline 930305 & March 9 & March 22 & 700 & \\ \hline 930306 & March 11 & March 23 & 5,600 & \\ \hline 930307 & March 14 & March 28 & 400 & \\ \hline 930308 & March 15 & March 29 & 800 & \\ \hline 930309 & March 15 & March 30 & 2,300 & \\ \hline 930310 & March 17 & March 30 & 300 & \\ \hline \multicolumn{4}{|c|}{ March subtotal-paid } & 21,300 \\ \hline 930311 & March 18 & Unpaid & $4,000 & \\ \hline 930312 & March 20 & Unpaid & 6,500 & \\ \hline 930313 & March 22 & Unpaid & 3,300 & \\ \hline 930314 & March 22 & Unpaid & 2,000 & \\ \hline 930315 & March 23 & Unpaid & 700 & \\ \hline 930316 & March 24 & Unpaid & 1,100 & \\ \hline 930317 & March 25 & Unpaid & 500 & \\ \hline 930318 & March 27 & Unpaid & 4,100 & \\ \hline 930319 & March 28 & Unpaid & 2,200 & \\ \hline 930320 & March 29 & Unpaid & 3,700 & \\ \hline 930321 & March 30 & Unpaid & 900 & \\ \hline 930322 & March 31 & Unpaid & 5,700 & \\ \hline \multicolumn{4}{|c|}{ March subtotal-unpaid } & 34,700 \\ \hline \end{tabular} JUPITER INSURANCE COMPANY Exhibit 1. Claims Paid Report for the Automobile Division For the Month of March Exhibit 2. Income Statement for March for the Automobile Division Notes: 1. Most clients pay their automobile insurance in January for the entire year. Some clients pay in three installments. Others pay on a monthly basis. The amount of premium revenue shown on this line represents the revenue earned for the month of March. Ordinarily, the premium revenue earned is 1/12 of the annual premium, regardless of the timing of the payments. 2. Includes $21,300 of claims received and paid, $34,700 of claims received but not paid, and $16,000 of claims that the actuarial department estimated were incurred during March, but that Jupiter had not received because they had not yet been reported to the company by its beneficiaries