A Company Shows an $800 Balance in Prepaid Insurance in the Unadjusted

Multiple Choice

A company shows an $800 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $600.This adjusting entry results in:

A) $600 less net income.
B) $600 more net income.
C) $200 difference between the debit and credit columns of the unadjusted trial balance.
D) $400 in the Income Statement Debit column on the work sheet.
E) $400 in the Balance Sheet Credit column on the work sheet.