CH 5

Q 2

Your company prepays $15,000 for a 1-year insurance policy that you recorded in Prepaid Insurance. When the fiscal year ends 3 months later, what adjusting entry will you record? (first line debit - second line credit) Select one: O a. Insurance Expense 3,750 Prepaid Insurance 3.750 O b. Insurance Expense 11,250 Prepaid Insurance 11.250 c. Prepaid Insurance 3,750 Insurance Expense 3.750 d. Prepaid Insurance 11.250 Insurance Expense 11.250 Check