The following information is taken from Cruz Company’s unadjusted and adjusted trial balances:

Given this information, which of the following is likely included among its adjusting entries?

a. A $400 credit to Prepaid Insurance and an $800 debit to Interest Payable.

b. A $400 debit to Insurance Expense and an $800 debit to Interest Payable.

c. A $400 debit to Insurance Expense and an $800 debit to Interest Expense. l01

Transcribed Image Text:

Unadjusted Adjusted Debit Credit Debit Credit Prepaid insurance $4,100 $3,700 Interest payable $ 0 $800