Husker Supplies Inc. purchased a 12-month insurance policy on March 1, 2015 for $1,800. At March 31, 2015, the adjusting journal entry to record expiration of this asset will include a

A. debit to Insurance Expense and a credit to Prepaid Insurance for $150
B. debit to Prepaid Insurance and a credit to Cash for $1,800
C. debit to Insurance Expense and a credit to Cash for $150
D. debit to Prepaid Insurance and a credit to Insurance Expense for $200

Ans: A. debit to Insurance Expense and a credit to Prepaid Insurance for $150

Business

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