Smokey Company purchases a one-year insurance policy on July 1 for $14,388. The adjusting entry on December 31 is Oa. debit Insurance Expense, $7,194 and credit Prepaid Insurance, $7,194 Ob. debit Insurance Expense, $14,388 and credit Prepaid Insurance, $14,388 Oc. debit Insurance Expense, $1,199 and credit Prepaid Insurance, $14,388 Od. debit Prepaid Insurance, $13,189 and credit Cash, $13,189