On October $1,2014,$ Adams Company paid $$4,800$ for a two year insurance policy with

the insurance coverage beginning on that date. As of December $31,2014,$ which of the

following account balances are correct after adjusting entries have been made?

A$.$ Prepaid insurance $$4,800,$ and Insurance expense $$0.$

B$.$ Prepaid insurance $$0,$ and Insurance expense $$4,800.$

C$.$ Prepaid insurance $$2,400,$ and Insurance expense $$2,400.$

D$.$ Prepaid insurance $$4,200,$ and Insurance expense $$600.$