A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in:

A

$200 decrease in net income.

B

$200 increase in net income.

C

$200 difference between the debit and credit columns of the Unadjusted Trial Balance.

D

$200 of prepaid insurance.

E

An error in the financial statements.