5 Question 8 (5 points) On April 1, 2023, the premium on a one-year insurance policy was purchased for $6,300 cash with the insurance coverage beginning on that date. The books are adjusted only at year-end. Which of the following correctly describes the effect on the financial statements of the December 31, 2023 adjusting entry? Prepaid insurance will increase $1,575. Prepaid insurance will decrease $1,575. Insurance expense will increase $1,575. Insurance expense will increase $4,725. Prepaid insurance will increase $4,725