On March 31, 2010, the Trident Company purchased a two-year fire insurance policy....

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JEWELYB

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...Trident recorded the purcha? On March 31, 2010, the Trident Company purchased a two-year fire insurance policy. Trident recorded the purchase by debiting Prepaid Insurance and crediting Cash for $12,000. Which of the following adjusting entries should Trident prepare at the end of 2010?

a. Prepaid Insurance 4,500
Insurance Expense 4,500

b. Insurance Expense 4,500
Prepaid Insurance 4,500

c. Prepaid Insurance 7,500
Insurance Expense 7,500

d. Insurance Expense 7,500
Prepaid Insurance 7,500
 
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