Harrod Company Paid $4,800 for a 4-Month Insurance Premium in Advance

Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1,with coverage beginning on that date.The balance in the prepaid insurance account before adjustment at the end of the year is $4,800 and no adjustments had been made previously.The adjusting entry required on December 31 is:

A) Debit Insurance Expense,$2,400; credit Prepaid Insurance,$2,400.
B) Debit Prepaid Insurance,$2,400; credit Insurance Expense,$2,400.
C) Debit Insurance Expense,$1,200; credit Prepaid Insurance,$1,200.
D) Debit Prepaid Insurance,$1,200; credit Insurance Expense,$1,200.
E) Debit Cash,$4,800; Credit Prepaid Insurance,$4,800.