On June 30, 2017, Cristo Company purchased a two-year fire insurance policy at a cost of $12,000. The policy covers the period July 1, 2017, to June 30, 2019. If Cristo Company used the expense approach to record the insurance purchased on June 30, the adjusting entry needed on December 31, 2017, would include a debit to

1. Insurance Expense for $3,000
2. Insurance Expense for $9,000
3. Prepaid Insurance for $3,000
4. Prepaid Insurance for $9,000