Cornhusker Supplies Inc. purchased a 12-month insurance policy on March 1 2016 for $2640. At March 31 2016 the adjusting journal entry to record expiration of this asset will include a

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The insurance policy is for 12 months and was purchased on March 1, 2016. Therefore, as of March 31, 2016, one month of the insurance policy has expired (1/12th of the policy has expired). The adjusting entry will involve moving 1/12th of the cost of the policy from Prepaid Insurance (asset) to Insurance Expense (expense) to reflect the expired portion.

The calculation for the monthly insurance expense is $2,640 / 12 months = $220.

Therefore, the adjusting journal entry on March 31, 2016 will be:
Debit Insurance Expense $220
Credit Prepaid Insurance $220.