What Is the Proper Adjusting Entry at June 30, the End

Multiple Choice

What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18,500, and unexpired amounts per analysis of policies of $6,000?

A) Debit Insurance Expense, $6,000; Credit Prepaid Insurance, $6,000.
B) Debit Insurance Expense, $18,500; Credit Prepaid Insurance, $18,500.
C) Debit Prepaid Insurance, $12,500; Credit Insurance Expense, $12,500.
D) Debit Insurance Expense, $12,500; Credit Prepaid Insurance, $12,500.