Cornhusker Supplies Inc. purchased a 12-month insurance policy on March 1, 2022 for $2,640. At March 31, 2022, the adjusting journal entry to record expiration of this asset will include a

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The adjusting journal entry to record the insurance policy's expiration will involve transferring a portion of the prepaid insurance amount to the insurance expense account, as the insurance policy's coverage will decrease.

Option A is incorrect because the payment for the insurance policy was made at the time of purchase, and there wouldn't be any payment transactions in the current entry.

Option B is also incorrect because the adjustment amount for insurance expense is calculated as follows:

($2,640 / 12 months) * 1 month = $220

Therefore, the entry should be a debit to insurance expense and a credit to prepaid insurance for $220, as shown in option C.

Option D is incorrect because there are no cash transactions that occurred during the current period.