Ambassador Hotels purchases one year of fire Insurance coverage on December 1 for $24,000 ($2,000 per month), debiting Prepaid Insurance. On December 31, Ambassador would record the following year-end adjusting entry: Transaction a. b. C. Multiple Choice OPEN NOTES O Account Title Insurance Expense Prepaid Insurance Insurance Expense Prepaid Insurance Insurance Expense Prepaid Insurance Option a Option b Debit 24,000 Option c 2,000 22,000 Credit 24,000 2,000 22,000 Saved No entry is required on December 31 because full cash payment was made on December 1 and the insurance does not expire until the following November 30. Help

Choice .000 Option a Option b Option c