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Taylor Foods purchased a two-year fire and extended coverage insurance policy on August 1,2023,(i.e., coverage...

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Accounting

Taylor Foods purchased a two-year fire and extended coverage insurance policy on August 1,2023,(i.e., coverage begins on August 1) and charged the $4,200 premium to Prepaid Insurance Expense. At its December 31,2023, year-end, Taylor Foods would record which of the following adjusting entries?
Select one:
a.
Dr Prepaid Insurance 875
Cr Prepaid Insurance Expense 875
b.
Dr Insurance Exp 875
Dr Prepaid Insurance Expense 3325
Cr Insurance Payable 4,200
c.
Dr Insurance Expense 3,325
Cr Prepaid Insurance Expense 3,325
d.
Dr Insurance Expense 875
Cr Prepaid Insurance Expense 875

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