Alaska Alehouse Purchased a $700 Two-Year Insurance Policy for Cash

Multiple Choice

Alaska Alehouse purchased a $700 two-year insurance policy for cash. The journal entry would require a:

A) debit to Prepaid Insurance and a credit to Cash.
B) debit to Insurance Expense and credit to Cash.
C) debit to Insurance Expense and a credit to Accounts Payable.
D) debit to Insurance Expense and a credit to Retained Earnings.