Oakville Inc. purchased a 12-month insurance policy on March 1, 2014 for $1,800. At March 31, 2014, the adjusting journal entry to record expiration of this asset will include:
A) a debit to Prepaid Insurance and a credit to Cash for $1,800.
B) a debit to Prepaid Insurance and a credit to Insurance Expense for $180.
C) a debit to Insurance Expense and a credit to Prepaid Insurance for $150.
D) a debit to Insurance Expense and a credit to Cash for $150.
Correct Answer:
Verified
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