On October 1, Tacoma Insurance Company Receives the Insurance Premium $\quad$

On October 1, Tacoma Insurance Company receives the insurance premium, in advance, from a customer for a 12-month insurance policy for $7,200. Assuming that the company closes its books on December 31, what will be the adjusting entry on December 31?

A) Unearned Revenue 1,800
$\quad$ $\quad$ $\quad$ Prepaid Insurance 1,800
B) Unearned Revenue 1,800
$\quad$ $\quad$ $\quad$ Insurance Premium Revenue 1,800
C) Insurance Expense 1,800
$\quad$ $\quad$ $\quad$ Prepaid Insurance 1,800
D) Insurance Premium Revenue 1,800
$\quad$ $\quad$ $\quad$ $\quad$ Unearned Revenue 1,800