A Company Shows an $800 Balance in Prepaid Insurance in the Unadjusted

Multiple Choice

A company shows an $800 balance in Prepaid Insurance in the Unadjusted TrialBalance columns of the work sheet. The Adjustments columns show expired insurance of $600. This adjusting entry results in:

A) $400 in the Income Statement Debit column on the work sheet.
B) $600 more profit.
C) $600 less profit.
D) $400 in the Balance Sheet Credit column on the work sheet.
E) $200 difference between the debit and credit columns of the unadjusted trial balance.