Smokey Company purchases a one-year insurance policy on July 1 for $14,016. The adjusting entry on December 31 is Odebit Prepaid Insurance, $12,848 and credit Cash, $12,848 O debit Insurance Expense, $7,008 and credit Prepaid Insurance, $7,008 O debit Insurance Expense, $1,168 and credit Prepaid Insurance, $14,016 O debit Insurance Expense, $14,016 and credit Prepaid Insurance, $14,016