Hoffman, Incorporated adjusts its books each month but closes its books at the end of the year. The company's unadjusted trial balance at March 31 is as follows: Debit Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation: Equipment Unearned Service Revenue Capital Stock Retained Earnings Dividends Service Revenue Earned Salaries Expense Utilities Expense Rent Expense Totals Credit $ 11,050 9,750 1,430 3,000 25,200 $ 10,080 7,150 5,850 24,050 1,690 15,910 8,450 520 1,950 $ 63,040 $ 63,040 On March 1, Hoffman paid in advance for four months' insurance. The necessary adjusting entry at March 31 includes which of the following? Multiple Choice A credit to Prepaid Insurance for $2,250. A credit to Prepaid Insurance for $750 A debit to Prepaid Insurance for $750 A debit to Prepaid insurance for $2.250