On April 1, 2019, the premium on a one-year insurance policy was purchased for $2,100 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, 2019 adjusting entry? Multiple Choice Prepaid insurance will increase $1.575. Insurance expense will increase $1,575. Prepaid insurance will decrease $525. Insurance expense will increase $525