On January 1 the company paid for two years of insurance in advance for

$2,000. Assuming that proper entries were made at that time, what is the adjusting entry at the end of the year?

A. Debit Prepaid Insurance for $1,000, and credit Income Summary for the same amount.

B. Debit Insurance Expense for $1,000, and credit Prepaid Insurance for the same amount.

C. Debit Insurance Expense for $2,000, and credit Income Summary for the same amount.

D. None of the above