Garcia-Martinez Company had the following transactions during 2021: a. On January 1, 2021, purchase of equipment with cash (equipment has an estimated life of five years with no salvage value): Equipment Cash Debit $125,000 Credit $125,000 b. On July 1, 2021, purchase of a two-year insurance policy: Prepaid insurance Debit $60,000 Credit Cash $60,000 c. On October 1, 2021 advanced (loaned) the chief financial officer (CFO), with principal and interest at 5% on the note are due in one year: Note receivable Cash Debit $250,000 Credit $250,000 Required: 1. For each of the above transactions, record the necessary adjusting journal entry at December 31. 2. For each of the adjusting journal entries you record in #1, identify whether net income would be overstated or understated if the adjusting journal entry had not been recorded and by how much. 3. For each of the adjusting journal entries you record in #1, identify whether assets, liabilities, and equity would be overstated or understated and by how much if the adjusting journal entry had not been recorded