On September 1, 2020, Eureka, Inc. paid $24,000 for a 12-month insurance policy covering its major assets and business operations. The insurance policy runs from September 1, 2020 to August 31, 2021. The bookkeeper recorded this purchase (the original entry) in the insurance expense account. The year-end (December 31) adjusting entry would be:

A. debit insurance expense $16,000; credit prepaid insurance $16,000

B. debit prepaid insurance $8,000; credit insurance expense $8,000

C. debit prepaid insurance $16,000; credit insurance expense $16,000

D. debit insurance expense $8,000; credit prepaid insurance $8,000