1.On January 1, 2015, Peach Company purchased a five-year insurance policy for $5,000. If the cost was debited to Prepaid Insurance, the adjusting entry at the end of 2015 is:

A.Debit Prepaid Insurance, $1,800; credit Cash, $1,800.

B.Debit Prepaid Insurance, $1,000; credit Insurance Expense, $1,000.

C.Debit Prepaid Insurance, $360; credit Insurance Expense, $360.

D.Debit Insurance Expense, $1,000, credit Prepaid Insurance $1,000.