Question 12 ASU Home My ASU Colleges Schools Motocom 2 pts You have recently been hired by Pitchfork, Inc. to review its financial statements prepared for the years ending December 31, 20x1 and 20x2. Your review reveals the following 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 01000. Be careful to use a Capitalized "o" and not a zero '0' when entering an answer as Overstated) As of December 31: Net Inc Net Inc 20x1 Equity 20x1 Liabilities 20x1 Assets 20x2 Liabilities 20x2 Equity 20x2 20x2 Assets 20x1 ME 9 e DE N