Indicate which journal entry must be recorded for the following economic event on the exact day of the event: January 4th.

Indicate which journal entry must be recorded for the following economic event on the exact day of the event: January 4th. Johanna transfers the insurance contract for her tea equipment from her to the company immediately after she contributed the tea equipment in exchange for company shares. The insurance contract started on October 1st 2015. The insurance premium is $900 per year and it was paid in full when signed on October 1st 2015.

A.None of the others alternatives are correct

B.Dr Prepaid Insurance $675 and Cr Owners Equity $675

C.Dr Prepaid Insurance $900 and Cr Cash $900

D.Dr Prepaid Insurance $675 and Cr Cash $675

E.No journal entry

Which one is correct? And why?