On December 13, 2018, Tucson Corp $\begin{array}{ll}\text { Cash } & 12,000 \\\text { Prepaid Insurance } &&12,000 \\\end{array}$

On December 13, 2018, Tucson Corp. paid $12,000 for a two-year property insurance policy covering their corporate headquarters for the period December 15, 2018 to December 15, 2020. The payment was charged to insurance expense. What adjusting entry is needed at the end of December?
a.
$\begin{array}{ll}\text { Cash } & 12,000 \\\text { Prepaid Insurance } &&12,000 \\\end{array}$

b.
$\begin{array}{ll}\text { Prepaid Insurance } &11,750\\ \text { Insurance Expense } && 11,750 \\\end{array}$

c.
$\begin{array}{ll}\text { Insurance Expense } &12,000\\\text { Cash }&&12,000\end{array}$

d.
$\begin{array}{l}\text { Insurance Expense }&11,750 \\\text { Accounts Payable }&&11,750\\\end{array}$