Sunland Company paid \$1410 for a 12-month insurance policy and increased the Prepaid Insurance account upon payment on November 1, 2014. Sunland forgot to make an adjusting entry at the end of its fiscal year on December 31, 2014. Which of the following is an effect of the error? Expenses will be overstated and assets will be understated. Expenses will be understated and assets will be overstated. Assets will be understated and net income will be understated. Assets will be overstated and net income will be understated. eTextbook and Media