1. An insurance policy premium of $1,200 was paid on September 1, 2012, to cover a one-year period from that date. An asset was debited on that date. Adjusting entries are prepared once a year, at year end. The necessary adjusting entry at the company's year-end, December 31, 2012, is:

   	A.	Prepaid Insurance $400 Insurance Expense $400
   	B.	Insurance Expense $800 Prepaid Insurance $800
   	C.	Prepaid Insurance $800 Insurance Expense $800
   	D.	Insurance Expense $400 Prepaid Insurance $400