Final answer:
The true statement is that on June 30, the company would debit cash for $2,400. This reflects the cash payment for insurance, which is an expense that decreases the company's cash on hand, resulting in a debit entry.
Step-by-step explanation:
On June 30, a company purchasing one year of insurance coverage and paying $2,400 in cash presents a few different accounting entries. The true statement from the options provided is that on June 30, cash would be debited for $2,400. This is because when the company pays for the insurance, it decreases its cash balance, which is a debit entry in the accounting books. As for the other statements, prepaid insurance at the end of the year on the balance sheet would not be $2,400 since part of the insurance coverage would have been used up, thus decreasing the prepaid insurance value. Also, prepaid insurance would be a current asset, not a non-current asset, because it will be used up within one year. The amount shown as an expense on the income statement will depend on how much of the insurance has been used during the time period covered by the statement.