Use the Information Below to Answer the Following Questions:
Data $\$ 80$

Use the information below to answer the following questions:
Data Ltd uses accrual accounting and its financial year ends on 30 June. Expenses paid in advance are treated as assets. On 1 May 2011, Data Ltd pays $480 for a one-year fire insurance policy that expires on 30 April 2012.
-What is the journal entry made by Data Ltd on 1 May 2011?
A. DR Insurance expense $\$ 80$ $\quad$ CR Prepaid insurance $\$ 80$

B. DR Insurance expense $\$ 480$ $\quad$ CR Prepaid insurance $\$ 480$

C. DR Prepaid insurance $\$ 480$ $\quad$ CR Cash $\$ 480$

D. DR Insurance expense $\$ 480$ $\quad$ CR Cash $\$ 480$