On December 15, 2020, A Company made the following correct journal entry:

Prepaid insurance..........................................................24,000 Cash ......................................................................................... 24,000

Assume year-end is December 31. What transaction was the journal entry recording?

Select one:

a.

$24,000 payment by "A" to insure their office space starting December 2020.

b.

$24,000 cash received by "A" to provide insurance services starting in January 2021.

c.

$24,000 payment by "A" to insure their office space starting January 2021

d.

$24,000 cash received by "A" to provide insurance services starting in December 2020.

Clear my choice