Smokey Company purchases a one-year insurance policy on July 1 for $10,992. The adjusting entry on December 31 is O debit Insurance Expense. $10.992 and credit Prepaid Insurance, $10,992 debit...

Extracted text: Smokey Company purchases a one-year insurance policy on July 1 for $10,992. The adjusting entry on December 31 is O debit Insurance Expense. $10.992 and credit Prepaid Insurance, $10,992 debit Insurance Expense. $5.496 and credit Prepaid Insurance. $5,496 debit Insurance Expense. $916 and credit Prepaid Insurance, $10.992 debit Prepaid Insurance, $10.076 and credit Cash. S10.076