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Accounting question, journal entry error regarding prepaid insurance

I am struggling to find what exactly is wrong about these journal entries? All the other examples I've looked up look the exact same. Please advise! Thanks. 
Assume that you are the chief accountant at a small service company that prepares financial statements on December 31 of each year. You have a new staff member, Bethany Johnson, who is tasked with preparing journal entries for the company. While reviewing Bethany's work, you come across the following scenario.

On June 1, 2009, the company paid for property insurance on a newly purchased building. The insurance expires on May 31, 2010. Bethany recorded the following two journal entries regarding the insurance.
6/1/09 Prepaid Insurance 3,600
Cash 3,600
5/31/10 Insurance Expense 3,600
Prepaid Insurance 3,600
Write a memo to Bethany explaining the error that she made. In your memo, discuss the general purpose of adjusting journal entries, the financial statement effects of her error, and the proper entry that should have been made.

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