A company has a fiscal year$-$end of December $31$: $(1)$ on October $1,$$$15,000$ was paid for a one$-$year fire insurance policy; $(2)$ on June

$30$ the company loaned its chief financial officer $$13,000$; principal and interest at $7\%$ on the note are due in one year; and $(3)$

equipment costing $$63,000$ was purchased at the beginning of the year for cash. Depreciation on the equipment is $$12,600$ per year.

If the adjusting entries were not recorded, would net income be higher or lower and by how much?

Note: Decreases to account classifications should be entered as a negative.