An Insurance Premium of $18,000 was paid for the entire year (12 months) in advance. This payment was recorded correctly. During the past 6 months, however, no adjustments have been made. You are trying to record the adjusted journal entry for this (six months' insurance). What is the impact of this transaction on the company? Since this is just an adjustment of the previous transactions, no impact will be reflected in the income Statement or in the Balance Sheet. The Income Statement will not be affected, but the Assets on the balance sheet will be reduced. The income Statement will show lower profit, and the Assets will be reduced on the Balance Sheet The income Statement will show lower profit, but the Balance Sheet will not be affected