On December 31, 2019, Aver Corporation paid $13,000 for next year's insurance policy. This transaction should be recorded as follows by Aver:

	General Journal	Debit	Credit
A.	Insurance expense	13,000
	Insurance payable		13,000
B.	Prepaid insurance	13,000
	Insurance payable		13,000
C.	Prepaid insurance	13,000
	Cash		13,000
D.	Insurance expense	13,000
	Cash		13,000

Multiple Choice

• Option D

• Option A

• Option B

• Option C