A three-year insurance policy was purchased for $54,000 on March 31, 20x1 and the full amount was debited to Insurance Expense. No adjusting entries have ever been made. Required: Determine the effect of this error on the 20x1 financial statements, and, if not corrected, the 20x2 financial statements. Use O for overstated; U for understated, and NE for no effect. If there is an effect, state the dollar amount. (When entering your answer, do not space between the letter and dollar amount. Don't use commas. Example: If your answer is "Overstated by 1,000", enter your answer as O1000. Be careful to use a Capitalized "O" and not a zero "0" when entering an answer as Overstated.) As of December 31: Liabilities Liabilities Equity Net Inc Assets Equity Net Inc Assets 20x1 20x2 20x2 20x2 20x1 20x1 20x1 20x2