On November 1, 2015, the Morrison Company purchased a two-year umbrella insurance policy for $3,600 and recorded the transaction by debiting Prepaid Insurance and crediting Cash. Which of the following adjusting entries would be used by Morrison to properly account for prepaid insurance on December 31, 2015?
a. Insurance Expense 300
Accumulated Amortization-
Insurance 300
b. Prepaid Insurance 1,800
Cash 1,800
c. Insurance Expense 300
Prepaid Insurance 300
d. Prepaid Insurance. 3,600
Insurance Expense 3,600
