X Company prepares annual financial statements. On September 1, 2019, the Company paid $42,000 in advance for a two-year insurance policy. After the adjusting entry on December 31, 2019, what will X Company's 2019 financial statements show? O Prepaid Insurance, $10,500; Insurance expense, $31,500 O Prepaid Insurance, $31,500; Insurance expense, $10,500 O Prepaid Insurance, $35,000; Insurance expense, $7,000 O Prepaid Insurance, $7,000; Insurance expense, $35,000 O Prepaid Insurance, $42,000; Insurance expense, $0 O Prepaid Insurance, $0; Insurance expense, $42,000 Submit Answer) Tries 0/99