Given the followingtransaction:

Paid for six-month insurance premium. Coverage will start at the beginning of next month.

Required:For the transaction above, complete the following:

(a)Select the accounts that are affected (there will be at least two).

(b)Are the selected accounts increased or decreased?

(c)If Equity is selected, choose the reason that it has changed.

AccountWhich account is affected?Is the account increased or decreased?Why has Equity changed?Cash

Increased

Decreased

Accounts Receivable

Increased

Decreased

Supplies

Increased

Decreased

Prepaid Insurance

Increased

Decreased

Equipment

Increased

Decreased

Accounts Payable

Increased

Decreased

Equity

Increased

Choose One

Investment by Owner

Revenue

Expense

Drawing

Decreased