On August 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. The company debited Prepa nsurance at the time of the cash payment. Assuming no previous adjustments have been made for the expired insurance, the correct adjusting entr n December 31 would be: 0nsurance Expense 2.400 Prepaid Insurance 2.400 O Insurance Expense Cash 2,400 O Insurance Expense 1,000 Prepaid Insurance 1,000 O Prepaid Insurance 1,400 Insurance Expense 1.400 Prepaid Insurance 1.400 Cash 1,400