Identify the journal entry to be made on November 1 for the following transaction.

Taylor Co purchases $1 million of insurance for $1,200 on November 1. The policy begins on November 1 and ends on October 31. Dr=debit and cr=credit

Select one:

a. DR Prepaid Insurance $1200 CR Cash 1200 b. DR Cash $1,000,000 CR Prepaid Insurance $1,000,000 c. DR Cash $1200 CR Prepaid Insurance $1200 d. DR Prepaid Insurance $1,000,000 CR Cash $1,000,000