Which of the following shows how paying cash for an insurance policy that protects the company for some future time period affects a company's financial statements?

Multiple Choice

Option A

Option B

Option C

On October $1$ of Year $1$ Wilburn 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 Wilburn's financial statements?

$\backslash$table$[[,$Balance sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[,$Assets,,Liabilities,$+,$Equity,Revenue,$-,$Expenses,$=N,$Net,Income$],[$A$.,$NA$,=,$NA$,+,$NA$,$NA$,-,$NA$,=,,$NA$,$NA$],[$C$.,-,=,$NA$,+,-,$NA$,-,$NA$,=,,$NA$,-OA$