On January 1,2015,Peach Company Purchased a Five-Year Insurance Policy for $5,000.If

Multiple Choice

On January 1,2015,Peach Company purchased a five-year insurance policy for $5,000.If the cost was debited to Prepaid Insurance,the adjusting entry at the end of 2015 is:

A) Debit Prepaid Insurance,$1,800; credit Cash,$1,800.
B) Debit Prepaid Insurance,$1,000; credit Insurance Expense,$1,000.
C) Debit Prepaid Insurance,$360; credit Insurance Expense,$360.
D) Debit Insurance Expense,$360; credit Prepaid Insurance,$360.
E) Debit Insurance Expense,$1,000,credit Prepaid Insurance $1,000.