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, € 20,500, and unexpired amounts per analysis of policies of €4,000?

A) Debit Insurance Expense, € 4,000; Credit Prepaid Insurance, € 4,000.
B) Debit Insurance Expense, € 20,500; Credit Prepaid Insurance, € 20,500.
C) Debit Prepaid Insurance, € 16,500; Credit Insurance Expense, € 16,500.
D) Debit Insurance Expense, € 16,500; Credit Prepaid Insurance, € 16,500.