On October 1, 2023, the $12,000 premium on a one-year insurance policy for the building was paid and recorded as Prepaid Insurance Expense. On December 31, 2023 (end of the accounting period), what adjusting entry is needed?
a. Insurance expense (+E)                            2,000
        Prepaid insurance expense (−A)                         2,000
b. Insurance expense (+E)                             3,000
        Prepaid insurance expense (−A)                         3,000
c. Prepaid insurance expense (+A)              3,000
        Insurance expense (−E)                                         3,000
d. Prepaid insurance expense (+A)             9,000
        Insurance expense (−E)                                         9,000