If a Company Pays a 12-Month Insurance Premium for $2

If a company pays a 12-month insurance premium for $2 400 on 1 May 2019, then at 30 June 2019 the accounts will show:

A) a prepayment of $2 000 in the balance sheet and an insurance expense of $400 in the profit and loss account.
B) a prepayment of $400 in the balance sheet and an insurance expense of $2 000 in the profit and loss account.
C) a $2 400 asset in the balance sheet.
D) a $2 400 expense in the profit and loss statement.