Montana Inc $\begin{array} { c r } \text { Insurance Expense } & 22,000 \\\text { Prepaid Insurance } & 22,000\end{array}$

Montana Inc.'s fiscal year ended on December 31, 2012. The balance in the prepaid insurance account as of December 31, 2012, was $34,800 (before adjustment) and consisted of the following policies: The adjusting entry required on December 31, 2012, would be

A)
$\begin{array} { c r } \text { Insurance Expense } & 22,000 \\\text { Prepaid Insurance } & 22,000\end{array}$
B)
Insurance Expense $\quad 20,200$
Prepaid Insurance $\quad 20,200$
C)
$\begin{array} { c r } \text { Prepaid Insurance } & 17,600 \\\text { Insurance Expense } & 17,600\end{array}$
D)
$\begin{array}{l}\text { Insurance Expense } \quad 25,600\\\text { Prepaid Insurance } \quad 25,600\end{array}$