Under the Alternative Method for Recording Prepaid Expenses, Which Is

Multiple Choice

Under the alternative method for recording prepaid expenses, which is the correct set of journal entries?

A) $$\begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Prepaid Insurance } & \text { Cash } \\\hline \text { Insurance Expense } & \text { Prepaid Insurance } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Prepaid Insurance } & \text { Insurance Expense } \\\hline \text { Cash } & \text { Prepaid Insurance } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\\hline \text { Prepaid Insurance } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense } \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline{ \text { Initial Entry } } & { \text { Adjusting Entry } } \\\hline \text { Insuance Expense } & \text { Prepaid Insuance } \\\hline \text { Cash } & \text { Insuranes Expense } \\\hline\end{array}$$
E) $$\begin{array} { | l | l | } \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\\hline \text { Cash } & \text { Prepaid Inswance } \\\hline \text { Insuranes Expense } & \text { Insuranes Expense } \\\hline\end{array}$$