Use This Information Pertaining to the Alvino Corporation to Answer $\$ 200$

Use this information pertaining to the Alvino Corporation to answer the following question. 1. The corporation's Store Supplies account showed a beginning debit balance of $\$ 200$ and supplies purchased of $\$ 800$ . There were $\$ 300$ of supplies on hand at year end.
2. Depreciation on a building is estimated to be $\$ 5,000$ .
3. A one-year insurance policy was purchased for $\$ 2,000$ . Three months have passed since the purchase.
4. Accrued interest on a note receivable amounted to $\$ 100$ .
5. The company received a $\$ 3,600$ advance payment during the year on services to be performed. By the end of the vear, one-fouth of the services had been performed.
The adjusting entry for the insurance policy is

A)
$\begin{array} { l l } \text { Prepaid Insurance } & 500 \\\text { Insurance Expense } && 500\end{array}$
B)
$\begin{array}{c}\text { Insurance Expense } &1,500\\\text { Prepaid Insurance }&&1,500\end{array}$
C)
$\begin{array}{l}\text { Prepaid Insurance }&1,500 \\\text { Insurance Expense }&&1,500\end{array}$
D)
$\begin{array} { l l } \text { Insurance Expense } & 500\\\text {Prepaid Insurance}&&500 \end{array}$