We take on a one-year insurance policy against theft on June 1st, 2024, paying €12,000 annually upfront. Assuming that the company does monthly closings, what journal entry could we record on September 30th, 2024?

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1,000   Insurance premiums (625)       Prepaid expenses (480)  1,000

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1,000   Prepaid expenses (480)       Insurance premiums (625) 1,000

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1,000 Insurance premiums (625)       Cash in banks (572) 1,000

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12,000  Prepaid expenses (480)      Cash in banks (572) 12,000

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We take on a one-year insurance policy against theft on June 1st, 2024, paying €...

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