On April 1, 2014, the premium on a one-year insurance policy was purchased for $6,000 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, 2014 adjusting entry? O Prepaid insurance will increase $4,500. Insurance expense will increase $1,500. O Prepaid insurance will decrease $1,500. Insurance expense will increase $4,500