On June 30, 2012, Sinise Co

Multiple Choice

On June 30, 2012, Sinise Co. purchased a three-year fire insurance policy at a cost of $27,000 and debited Prepaid Insurance for the entire amount. The policy covers the period July 1, 2012, to June 30, 2015. The adjusting entry needed on December 31, 2012, includes a credit to

A) Insurance Expense for $9,000
B) Insurance Expense for $4,500
C) Prepaid Insurance for $4,500
D) Prepaid Insurance for $9,000