On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate how the adjusting journal entry (AJE) at the end of September should be recorded:

SeptemberDescriptionAmount15Pays first 2 months of insurance$1,200

Dr. Prepaid Insurance 600 and Cr. Insurance Expense 600

Dr. Prepaid Insurance 1,200 and Cr. Cash 1,200

None of the others journal entries are correct, it is another journal entry

Dr. Insurance Expense 1,200 and Cr. Cash 1,200

The transaction does not need an AJE