In first of October, Muscat company Paid OMR 12,000 for a one-year insurance policy.

The Journal Entry should be:

Select one:

a. No entrynot a transaction

b. DEBIT Cash OMR 12,000 and CREDIT Prepaid Insurance OMR 12,000

c. DEBIT Insurance expenses OMR 12,000 and CREDIT cash OMR 12,000

d. DEBIT Prepaid Insurance OMR 12,000 and CREDIT Cash OMR 12,000

e. DEBIT Prepaid Insurance OMR 3,000 and CREDIT Cash OMR 3,000