5. B. On 30 June, the last day of its financial year, Fast Deliveries Ltd paid $1200 cash for a one-year insurance policy. What is the appropriate journal entry to record the payment, assuming the insurance policy becomes effective on 1 July? A Dr Insurance expense $1200 Cr Prepaid insurance $1200 Dr Prepaid insurance $1200 Cr Cash $1200 c. Dr Cash $1200 Cr Prepaid insurance $1200 D. Dr Prepaid insurance $ 120 Cr Insurance expense $ 120