Nancy O'Rode Starts a Consulting Business Called EducateMe

Multiple Choice

Nancy O'Rode starts a consulting business called EducateMe.On May 1,the company paid $1,200 cash for six months of insurance coverage beginning on June 1.How would EducateMe record this transaction?

A) Debit Cash for $1,200 and credit Prepaid Insurance for $1,200.
B) Debit Cash for $1,200 and credit Insurance Expense for $1,200
C) Debit Insurance Expense for $1,200 and credit Cash for $1,200.
D) Debit Prepaid Insurance for $1,200 and credit Cash for $1,200.
E) Debit Cash for $1,200 and credit Common Stock for $1,200.