Wilson Company Paid $4,800 for a 4-Month Insurance Premium in Advance

Wilson Company paid $4,800 for a 4-month insurance premium in advance on November 1,with coverage beginning on that date.The balance in the prepaid insurance account before adjustment at the end of the year is $4,800 and no adjustments had been made previously.The adjusting entry required on December 31 is:

A) Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.
B) Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400.
C) Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200.
D) Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200.
E) Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.