Ingle Company paid $12,960 for a four-year insurance policy on September 1 and recorded the $12,960 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Ingle make on December 31 . the end of the accounting period?
a. Prepaid Insurance .................. 810
Insurance Expense ................ 810
b. Insurance Expense .................. 1,080
Prepaid Insurance ................ 1,080
c. Insurance Expense .................. 3,240
Prepaid Insurance ................ 3,240
d. Prepaid Insurance .................. 11,880
Insurance Expense ................ 11,880
B
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Answer the following statement true (T) or false (F)
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