Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances).

The possible answers are the following; I am stuck on what it should be and why.

Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Impact 1 Impact 2 A. B. C. D. Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 A. B. C. Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 Impact 1 -assets + liabilities -assets - assets Impact 2 + equity -equity + equity -equity D. A. B. Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 Impact 1 -assets + liabilities -assets -assets Impact 2 -equity -equity -equity -equity C. D. A. Impact 1 - assets - liabilities -assets Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 B. Impact 2 -equity + equity -equity -equity C. D. + assets A. B. Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 Impact 1 + assets + liabilities -assets Impact 2 -equity -equity + equity - equity C. D. -assets