The following information is taken from Cruz Company€™s unadjusted and adjusted trial balances.

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

Transcribed Image Text:

Unadjusted Adjusted Debit Credit Debit Credit Prepaid insurance.... Interest payable $3.700 $800