J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts

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J. Brown Consulting paid cash for a 5-month insurance policy that begins on December 1. Since the company's policy is to initially record prepaid and unearned items in balance sheet accounts, we need to record the transaction by debiting prepaid insurance (an asset account on the balance sheet) and crediting cash (also an asset account on the balance sheet) for $2,500. The journal entry would be: 
Prepaid Insurance   $2,500 
Cash   $2,500

J Brown Consulting Paid $2,500 Cash for a 5-Month Insurance Cash 2,500 Insurance Expense 2,500\begin{array} { | l | r | r | } \hline \text { Cash } & 2,500 & \\\hline \text { Insurance Expense } & & 2,500 \\\hline\end{array} Cash Insurance Expense ​2,500​2,500​​

J Brown Consulting Paid $2,500 Cash for a 5-Month Insurance $\begin{array} { | l | r | r | } \hline \text { Cash } & 2,500 & \\\hline \text { Insurance Expense } & & 2,500 \\\hline\end{array}$