Bannister Inc

Multiple Choice

Bannister Inc.'s fiscal year ended on November 30, 2011. The accounts had not been adjusted for the fiscal year ending November 30, 2011. The balance in the prepaid insurance account as of November 30, 2011, was $35,200 (before adjustment at Nov. 30, 2011) and consisted of the following policies:

The adjusting entry required on November 30, 2011, would be

A) Insurance Expense ................... 24,000 Prepaid Insurance ................. 24,000
B) Insurance Expense ................... 9,600 Prepaid Insurance ................. 9,600
C) Insurance Expense ................... 11,200 Prepaid Insurance ................. 11,200
D) Insurance Expense ................... 16,400 Prepaid Insurance ................. 16,400