1. On June 30, Year 5, Company A paid in cash to renew its now-expired warehouse insurance policy for 3 years. The insurance premium paid on June 30, Year 5, was 20% greater than the previous insurance premium for 3 years paid on June 30, Year 2. Under Company A's accounting system, all insurance premiums paid are recognized (debited) as prepaid insurance expense. The only journal entry that was recorded during Year 5 regarding insurance was the payment of insurance premium for the renewal of the policy.