J Brown Consulting Paid $2,500 Cash for a 5-Month Insurance $\begin{array} { | c | r | r | } \hline \text { Insurance Expense } & 2,500 & \\\hline \text { Cash } & & 2,500 \\\hline\end{array}$

question 155

Multiple Choice

J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record this transaction.

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Insurance Expense } & 2,500 & \\
• \hline \text { Cash } & & 2,500 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 2,500 & \\
• \hline \text { Insurance Expense } & & 2,500 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 2,500 & \\
• \hline \text { Prepaid Insurance } & & 2,500 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Prepaid Insurance } & 2,500 & \\
• \hline \text { Cash } & & 2,500 \\
• \hline
• \end{array}\)
• E) \(\begin{array} { | c | r | r | }
• \hline \text { Insurance Expense } & 2,500 & \\
• \hline \text { Prepaid Insurance } & & 2,500 \\
• \hline
• \end{array}\)

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