On October 1 of Year 1 Lesikar Company paid $1,200 cash for an insurance policy that would provide protection for a one year term. Which of the following shows how the required adjustment on December 31, Year 1 will affect Lesikars ledger accounts?

Assets			=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
(1,200)		1,200

Assets			=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		1,200						(1,200)

Assets			=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		(900)						(900)

Assets			=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		(300)						(300)

Assets			=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		3,600		3,600