On May 1, 2007, Dobler Corporation paid $9,600 to purchase a 24-month insurance policy. Assume the Dobler records the purchase as an asset and that the books are closed on December 31. Assignment: 1) Show the purchase of the insurance policy and the related adjusting entry to insurance expense in the accounting equation. 2) Assume that Dobler Corporation failed to record the adjusting entry to reflect the expiration of insurance. How would the error affect the company's 2007 income statement and balance sheet?