On January 1, a company purchased a five-year insurance policy for $6,000 with coverage starting immediately. The adjusting entry at the end of the first year is Select one a Debit Prepayments, $1,200; credit Insurance Expense, $1,200. b. Debit Insurance Expense, $4,800; credit Prepayments, $4,800 O c. Debit Insurance Expense, $1200; credit Prepayments, $1,200 d Debit Prepayments, $4,800, credit Insurance Expense, 54,800