16. Required information

On June 1 of Year 1 Doe Company paid $1,800 cash for an insurance policy that would protect the company for one year. The company's fiscal closing date is December 31. Based on this information alone, the amount of prepaid insurance and insurance expense shown on the Year 2 financial statements would be

Prepaid Insurance Insurance Expense $1,050 $750

Prepaid Insurance Insurance Expense zero $1,800

Prepaid Insurance Insurance Expense $750 $1,050

Prepaid Insurance Insurance Expense zero $750