On October 1,2014,Golde Company Paid $12,000 for One Year of Insurance

Multiple Choice

On October 1,2014,Golde Company paid $12,000 for one year of insurance for the period,October 1,2014 through September 30,2015.Which of the following will be part of the adjusting entry on December 31,2014?

A) Debit Prepaid Insurance for $3,000
B) Debit Prepaid Insurance for $9,000
C) Debit Insurance Expense for $3,000
D) Debit Insurance Expense for $9,000