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On September1, 2019, a company paid $ 8 comma 400 $8,400 in advance for two years insurance and debited prepaid insurance. The December31, 2019, adjusting

On September1, 2019, a company paid $ 8 comma 400

$8,400 in advance for two years insurance and debited prepaid insurance. The December31, 2019, adjusting entry should include a debitto:

  1. prepaid insurance for $2,800
  2. prepaid insurance for $1,400
  3. insurance expense for $7,000
  4. insurance expense for $1,400

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