The following information is taken from Camara Company's unadjusted and adjusted trial balances.

Given this information, which of the following is likely included among its adjusting entries?
a. A $400 debit to Insurance Expense and an $800 debit to Interest Payable.
b. A $400 debit to Insurance Expense and an $800 debit to Interest Expense.
c. A $400 credit to Prepaid Insurance and an $800 debit to Interest Payable.

Transcribed Image Text:

Unadjusted Debit Credit Debit Credit $4,100 Adjusted Prepaid insurance. $3,700 $800