On October 1,2012 Moe Company paid $30,000 cash for an insurance policy that provides coverage for one year beginning immediately. The required adjusting entry on December 31,2012 , will Decrease assets by $7,500. O Decrease equity by $22,500. O Increase liabilities by $7,500. Increase equity by $30,000.

On October 1,2012 Moe Company paid \$30,000 cash for an insurance policy that provides coverage for one year beginning immediately. The required adjusting entry on December 31, 2012, will Decrease assets by $7,500. Decrease equity by $22,500. Increase liabilities by $7,500. O Increase equity by $30,000