1. Esme Inc. paid $9,000 to renew its only insurance policy for 2 years on March 1, year 1, the effective date of the policy. At March 31, year 1, Esme's unadjusted trial balance showed a balance of $500 for prepaid insurance and $9,000 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense in Esme's financial statements for the 3 months ended March 31, year 1? Prepaid Insurance Insurance Expense_