on september 1, 2020, eureka, inc. paid $24,000 for a 12-month insurance policy covering its major assets and business operations. the insurance policy runs from september 1, 2020 to august 31, 2021. the bookkeeper recorded this purchase (the original entry) in the insurance expense account. the year-end (december 31) adjusting entry would be:

group of answer choices

debit insurance expense $16,000; credit prepaid insurance $16,000

debit prepaid insurance $8,000; credit insurance expense $8,000

debit prepaid insurance $16,000; credit insurance expense $16,000

debit insurance expense $8,000; credit prepaid insurance $8,000