If a company pays a 12-month insurance premium for $48,000 on 1 June 2020, at 30 June 2020 the accounts will show:

Select one:

a.A prepayment of $44,000 in the balance sheet and an insurance expense of $4,000 in the income statement

b.A prepayment of $4,000 in the balance sheet and an insurance expense of $44,000 in the income statement

c.$48,000 asset in the balance sheet

d.$48,000 expense in the income statement

e.None of the above