Use the following information to answer Questions 1-6:

The unadjusted trial balance for a company as of Dec. 31, 2015 appears below.

Debit Credit

Cash $10,000 Accounts receivable 12,000 Inventory 15,000 Prepaid insurance 4,800 Equipment 9,000 Accumulated depreciation $ 3,600 Accounts payable 1,000 Unearned revenue 9,400 Common stock 22,000 Retained earnings 7,500 Dividends 1,000 Revenue 28,600 Salary expense 8,200 Supplies expense 1,500 Utility expense 800 Rent expense 3,600 Advertising expense 1,200 Cost of goods sold 5,000

$72,100 $72,100

Additional data:

1. Supplies were purchased for $1,500 during the year and debited to supplies expense. Supplies used during the year amounted to $700.
2. Accrued salaries on December 31, 2015 amount to $600.
3. Of the amount in unearned revenue, $5,500 had still not been earned at year-end.
4. The equipment was purchased on January 1, 2013. It is being depreciated over a 5 year life using the straight line method of depreciation with no salvage value.
5. The prepaid insurance account reflects the annual premium which was paid on October 1, 2015.

The adjusting journal entry to record item (E) above would include a:

	A.	debit to Prepaid Insurance for $1,200
	B.	credit to Prepaid Insurance for $800
	C.	credit to Insurance Expense for $2,200
	D.	credit to Insurance Expense for $800
	E.	debit to Insurance Expense for $1,200