On October 1, 2016, Jay Walker Company purchased a one-year insurance policy for $660. The correct adjusting entry on December 31, 2016, is
a. debit Insurance Expense $660; credit Prepaid Insurance $660
b. debit Insurance Expense $495; credit Prepaid Insurance $495
c. debit Prepaid Insurance $55; credit Insurance Expense $55
d. debit Insurance Expense $165; credit Prepaid Insurance $165.
