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Jones Company paid $3.000 on May 1st Year 1 for insurance coverage for a one year period beginning May 1st Year 1 Assuming this cost was originally recorded as an asset, the adjusting entry required to recognize insurance expense on December 31st, Year I would have what effect on the financial statements? Multiple voice Rev Asses S1000) Lab ha Equity S1000 EXP S1000 Net Stocol Cash Flow na Asses 501000 Lab nila Equity $12.0000 Rew ne Exp S2000 Net Inc $12.000 Cash Flow $12000J OA - Assets Stool Lieb w Equity $10001 Hey nia EX STOOD Netre SO) Cashow $1.000 Rev Assets $12000 ST270001 Exp $2.000 Netin $12000 Cashow na Assets List + EXD Netine Cash Flow Jones Company paid $3,000 on May 1st. Year 1 for insurance coverage for a one-year period beginning May Ist. Year 1. Assuming this cost was originally recorded as an adjusting entry required to recognize insurance expense on December 31st Year 1 would have what effect on the financial statements? Multiple Choice Liab Rev Cash How Assets $11,000 Equity $11.000) Exp $1,000 Net Inc $11.000) nila Lab Assets $(2000) Equity $(2.000) Rev na Exp $2000 Net Inc $12,000) Cash Flow $(2.000) OA n/a + Assets $11000) Liab na Equity $(1.000) Rev nia Exp $1,000 Net Inc S(1000) Cash How $11.000) Rev Assets SE2000) Liab nila Cash Flow Equity $12,000) Exp $2,000 nia Net Inc $12.0001 Assets SO10001 Liab na Equity $13,000) Rev n/a Exp $3.000 Net Inc $13,000) Cash Flow $(3.000) OA

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