J Brown Consulting Paid $2,500 Cash for a 5-Month Insurance $\begin{array}{|l|r|r|}\hline \text { Cash } & 2,500 & \\\hline \text { Insurance Expense } & & 2,500 \\\hline\end{array}$

J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December
1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts
A)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,500 & \\\hline \text { Insurance Expense } & & 2,500 \\\hline\end{array}$
B)
$\begin{array}{|l|r|r|}\hline \text { Prepaid Insurance } & 2,500 & \\\hline \text { Cash } & & 2,500 \\\hline\end{array}$
C)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,500 & \\\hline \text { Prepaid Insurance } & & 2,500 \\\hline\end{array}$
D)
$\begin{array}{|l|r|r|}\hline \text { Insurance Expense } & 2,500 & \\\hline \text { Cash } & & 2,500 \\\hline\end{array}$
$$\begin{array}{l}\text { E) }\\\begin{array} { | l | r | r | } \hline \text { Insurance Expense } & 2,500 & \\\hline \text { Prepaid Insurance } & & 2,500 \\\hline\end{array}\end{array}$$