On October $1,2024,$ St Kilda Coffee Co$.($a calendar year end corporation that uses accrual$-$basis accounting$)$ paid $$24,000$ for $12-$months of insurance on a warehouse that covers the period October $1,2024$ through September $30,2025.$ When this transaction is recorded on October $1,2024,$ it will:

Group of answer choices

decrease assets and decrease stockholders' equity.

decrease liabilities and increase stockholders' equity.

change the mix of assets, but have no effect on liabilities or stockholders' equity.

increase assets and increase liabilities.