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What adjusting entry made to the Prepaid Insurance account

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Question - Johnson Co. paid $3,600 for one year of liability insurance on the first day of the month. This transaction was recorded with a debit to Prepaid Insurance and a credit to Cash. At the end of the month, what adjusting entry must be made to the Prepaid Insurance account?

a. a debit to Prepaid Insurance and a credit to Insurance Expense for $3,300

b. a debit to Prepaid Insurance and a credit to Insurance Expense for $300

c. a debit to Insurance Expense and a credit to Prepaid Insurance for $3,300

d. a debit to Insurance Expense and a credit to Prepaid Insurance for $300

Reference no: EM132628483

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