Question: The following information is taken from Cruz Company's unadjusted and adjusted trial balances.
Unadjusted                        Adjusted
Debit     Credit                    Debit     Credit
Prepaid insurance . . . . . . . . . . $4,100                                      $3,700
Salaries payable . . . . . . . . . .                        $ 0                                          $800
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 Interest Expense.