On March 1st, Alejandro Consulting paid $2,500 cash for a 5-month insurance policy that begins that day. Given the choices below, determine the general journal entry that Alejandro Consulting will make to record the cash payment.
Multiple Choice
Account Title
Insurance Expense
Cash
Debit Credit
2,500
2,500
Cash
Account Title
Insurance Expense
Debit Credit
2,500
2,500
Cash
Account Title
Prepaid Insurance
Debit Credit
2,500
2,500
Account Title
Prepaid Insurance
Cash
Debit Credit
2,500
2,500
Account Title
Insurance Expense
Prepaid Insurance
Debit Credit
2,500
2,500