Answer:
Insurance paid in advance
(prepaid expense) $1000 Debit
Cash. $1000 Credit
Explanation: it is an expense paid in advance because we are advancing 12 months or a year of payment that should be monthly, so in order not to affect the monthly income statement of the company each month you have to register a portion of this expense paid in advance, take it to a discharge in the income statement and subsequently, regularize this item of the asset because we already disbursed the cash, however we cannot place the entire money in the statement of income.
