X Company prepares annual financial statements. On May 1, 2014, X Company paid Y Company $48,000 in advance for a two-year insurance policy. 9. X Company's adjusting entry on December 31, 2014, should include a $16,000 decrease in Cash. $8,000 decrease in Paid-In Capital. $16,000 decrease in Prepaid Insurance. $16,000 decrease in Retained Earnings. $24,000 increase in Accounts Payable. $8,000 decrease in Prepaid Insurance. 10. Y Company's adjusting entry on December 31, 2014, should include a $16,000 decrease in Deferred Revenue. $16,000 decrease in Retained Earnings. $8,000 increase in Paid-In Capital. $16,000 increase in Cash. $16,000 increase in Prepaid Insurance. $16,000 increase in Deferred Revenue