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03-01-2024
Business

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On September 30, 2016, MNO Company paid $6,000 in advance for a one year insurance policy effective October 1, 2016. What is the adjusting entry required on October 31, 2016?
A. Debit Insurance Expense $500; Credit Prepaid Insurance $500
B. Debit Prepaid Insurance $6,000; Credit Insurance Expense $6,000
C. Debit Insurance Expense $6,000; Credit Prepaid Insurance $6,000
D. Debit Prepaid Insurance $500; Credit Insurance Expense $500

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