Question 31 2.5 pts Mason Company bought a one year insurance policy on January 1 for $1,200. If the company prepares adjustments on January 31, the necessary adjustment would: O Have no effect on the balance sheet. O Decrease Cash and decrease Retained Earnings $100. O Increase Prepaid Insurance and decrease Cash $1,200. O Decrease Prepaid Insurance and decrease Retained Earnings $100. D Question 32 On January 1, Laurel Company prepaid $6,000 rent on a building for twelve months. If the company prepares adjustments on January 31, the necessary adjustment would: Increase Prepaid Rent and decrease Cash $6,000. Have no effect on the balance sheet. Decrease Prepaid Rent and Retained Earnings $500. O Decrease Cash and Retained Earnings $500. 2.5 pts