On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation:

September	Description	Amount
15	Pays first 2 months of insurance	$1,200

a. Increase and decrease assetsb. Increase assets and increase Owner's equityc. Increase assets and increase liabilitiesd. None of the others alternatives are correcte. Decrease assets and decrease liabilities