Hardwood Supplies Inc $£ 900$
B) Debit to Prepaid Insurance and a Credit to 1

Hardwood Supplies Inc. purchased a 12-month insurance policy on March 1, 2011 for £900. At March 31, 2011, the adjusting journal entry to record expiration of this asset will include a

A) debit to Prepaid Insurance and a credit to Cash for $£ 900$ .
B) debit to Prepaid Insurance and a credit to Insurance Expense for $£ 100$ .
C) debit to Insurance Expense and a credit to Prepaid Insurance for $£ 75$ .
D) debit to Insurance Expense and a credit to Cash for $£ 75$ .