Question

On April 1, 20142014, Bambi Insurance Company sold a one-year insurance policy covering the year ended March 31, 20152015. Bambi collected the full $ 2 comma 400$2,400 on April 1, 20142014. Bambi made the following journal entry to record the receipt of cash in advance: Journal Entry Date Accounts Debit Credit Apr 1 Cash 2,400 Unearned Revenue 2,400 Nine months have passed, and Bambi has made no adjusting entries. Based on these facts, the adjusting entry needed by Bambi at December 31, 2014, is A. Unearned Revenue 1,800 Insurance Revenue 1,800 B. Insurance Revenue 600 Unearned Revenue 600 C. Insurance Revenue 1,800 Unearned Revenue 1,800 D. Unearned Revenue 600 Insurance Revenue 600