On November 1, 20X8, your calendar year company pays $1,200 for 12 months insurance, recording it as an expense. Just before closing the books, you realize that no adjusting entry was made. The correcting entry will:

		not be necessary
		debit Insurance Expense for $200; credit Prepaid Insurance for $200
		debit Insurance Expense for $1,000; credit Prepaid Insurance for $1,000
		debit Prepaid Insurance for $200; credit Insurance Expense for $200
		debit Prepaid Insurance for $1,000; credit Insurance Expense for $1,000