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Mason Company bought a one year insurance policy on January 1 for $1,200. If the company prepares adjustments on January 31, the necessary adjustment would: Decrease assets and stockholders' equity $100. O Increase assets $1.200 Have no effect on total assets. O Decrease assets and increase stockholders' equity $100. On January 1, Laurel Company prepaid $6,000 rent on a building for twelve months. If the company prepares adjustments on January 31, the necessary adjustment would: Increase assets $6,000. Decrease assets and increase stockholders' equity $500. Decrease assets and stockholders' equity $500. Have no effect on total assets