Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of December 31: on October 1, $24,000 was paid for a one-year flood insurance policy; on June 30 the company lent its chief operating officer $15,000; principal and interest at 4% are due in one year; equipment costing $75,000 was purchased at the beginning of the year for cash. Prepare the necessary adjusting entries at December 31 for each of the items listed. Depreciation on the equipment is $15,000 per year. If the adjusting journal entries were not made, would net income be higher or lower and by how much