On June 1,Year 1,Maverick Company Paid $1,200 Cash for an Insurance

On June 1,Year 1,Maverick Company paid $1,200 cash for an insurance policy that would protect the company for one year.The company's fiscal closing date is December 31.Based on this information,the amount of insurance expense and the cash flow from operating activities shown on the Year 1 financial statements would be

A) $$\begin{array} { | c | c | } \hline \text { Insurance Expense } & \text { Cash Flow } \\\hline 500 & 1,200 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | } \hline \text { Insurance Expense } & \text { Cash Flow } \\\hline 700 & 1,200 \\\hline\end{array}$$
C) $$\begin{array} { | c | c | } \hline \text { Insurance Expense } & \text { Cash Flow } \\\hline 1,200 & 1,200 \\\hline\end{array}$$
D) $$\begin{array} { | c | c | } \hline \text { Insurance Expense } & \text { Cash Flow } \\\hline 700 & 500 \\\hline\end{array}$$