Journal Entry Query

This relates to prepayments etc.

I know that prepaid expenses are deducted from the year’s expenses, however I don’t get the following:

What’s the entry when we PAY in advance?

Is it:
Dr Prepayment (Asset), Cr Cash

OR do we first go like:
Dr Exp., Cr Cash and at year-end: Dr Prepayment (Asset), Cr Exp.?

And if we do go by the second route, then when we RECEIVE payment in advance, we go like:
Dr Cash, Cr Income THEN Dr Income, Cr Prepaid Income (Liability)

OR simply: Dr Cash, Cr Prepaid Income?

I apologize for wasting your time with all this but do prepaid expenses NEVER appear with eg cash paid?