On October 1, Year 1, Wilson Company paid cash for an insurance policy that would provide protection for a one-year term. Which of the following shows how the required adjusting entry on December 31, Year 1 will affect Wilson's financial statements?

Balance Sheet					Income Statement					Stmt of Cash Flows
Assets	=	Liab.	+	Equity	Rev.		Exp.	=	Net Inc.
NA		NA		NA	NA		NA		NA	NA

Balance Sheet					Income Statement					Stmt of Cash Flows
Assets	=	Liab.	+	Equity	Rev.		Exp.	=	Net Inc.
NA		NA		NA	NA		+			OA

Balance Sheet					Income Statement					Stmt of Cash Flows
Assets	=	Liab.	+	Equity	Rev.		Exp.	=	Net Inc.
		NA			NA		NA		NA	OA

Balance Sheet					Income Statement					Stmt of Cash Flows
Assets	=	Liab.	+	Equity	Rev.		Exp.	=	Net Inc.
		NA			NA		+			NA