On April 1, 2018, the premium on a one-year insurance policy was purchased for $3,000 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, 2018 adjusting entry? Insurance expense will increase $750. Prepaid insurance will increase $2,250. Prepaid insurance will decrease $750. Insurance expense will increase $2,250