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. a)Show how the required adjustment on December 31, Year 1 will affect Lesikars ledger accounts? b)And how the required entry on Dec 31, Year 1 will affect the financial statements? Balance/income/equity

a)

Assets

=

Liabilities

+

Stockholders Equity

b)

Balance Sheet

Income Statement

Statement of Cash Flow