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Fred Company paid $48,000 for a two-year insurance policy on October 1 and recorded the $48,000 as a debit to Prepaid Insurance and a credit

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Fred Company paid $48,000 for a two-year insurance policy on October 1 and recorded the $48,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Fred make on December 31, the end of the accounting period (no previous adjustment has been made)? A) Prepaid Insurance 42,000 Insurance Expense 42,000 B) Insurance Expense 6,000 Prepaid Insurance 6.000 C) Prepaid Insurance 6.000 Insurance Expense 6.000 D) Insurance Expense 24.000 Prepaid Insurance 24.000 OA OD

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