On January 1, 20X1. Thomas Company paid $5,000 for a two-year insurance policy on the building. The accounting period ends on December 31. At the end of 20X1, the financial statements should report which of the following? A . C D. On the Statement of Financial Position Prepaid insurance, $0 Prepaid insurance, $1,250 Prepaid insurance, $2,500 Prepaid insurance, $5,000 On the Statement of Earnings Insurance expense, $5,000 Insurance expense, $1,250 Insurance expense, $2,500 Insurance expense, 50 Multiple Choice Choice Choice D Choice Choice A