On July 1, 2020 Jones Consulting pays $6,000 for a one-year insurance policy that will expire June 30, 2021. The journal entry that needs to be recorded on July 1, 2020 is: Debit Prepaid Insurance and credit Cash $6,000 Debit Insurance Expense and credit Cash $6,000 Debit Cash and credit Prepaid Insurance $6,000 Debit Prepaid Insurance and credit Accrued Expenses $6,000