On June 30, a company purchased 1 year of insurance coverage which started immediately, paying cash of $2,400. Choose the true statement.

On the Balance Sheet at the end of the year, prepaid insurance will be a non-current asset.

On June 30, cash would be debited for $2,400.

On the Income Statement for the year, insurance expense will be $1,200.

On the Balance Sheet at the end of the year, prepaid insurance will be $2,400.