On October 1,2019,Adams Company Paid $4,800 for a Two-Year Insurance

Multiple Choice

On October 1,2019,Adams Company paid $4,800 for a two-year insurance policy with the insurance coverage beginning on that date.As of December 31,2019,which of the following account balances are correct after adjusting entries have been made?

A) Prepaid insurance $4,800,and Insurance expense $0.
B) Prepaid insurance $0,and Insurance expense $4,800.
C) Prepaid insurance $2,400,and Insurance expense $2,400.
D) Prepaid insurance $4,200,and Insurance expense $600.