On 30 June, the Last Day of Its Financial Year

On 30 June, the last day of its financial year, Fast Deliveries Ltd paid $1200 cash for a one-year insurance policy. What is the appropriate journal entry to record the payment, assuming the insurance policy becomes effective on 1 July?

A) Dr Insurance expense $1200 Cr Prepaid insurance $1200
B) Dr Prepaid insurance $1200 Cr Cash $1200
C) Dr Cash $1200 Cr Prepaid insurance $1200
D) Dr Prepaid insurance $ 120 Cr Insurance expense $ 120