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