You have recently been hired by Rooney, Inc. to review its financial statements prepared for the years ending December 31, Y1 and Y2. Your review reveals an error. A three-year insurance policy was purchased for $5,400 on March 31, Y1 and the full amount of the policy was debited to the insurance expense account on this date. Rooney mistakenly never made an adjusting entry related to this policy. Tasks: How does this error affect Rooneys Y1 Net Income? How does this error affect Rooneys Y2 Net Income? How does this error affect Rooneys Y1 Total Assets balance? How does this error affect Rooneys Y2 Total Assets balance? Show how this error affects the components of the accounting equation for Y1 and Y2. In other words, prove that the effect of the error affects both sides of the accounting equation (assets = liabilities + equity) equally.

Please show all work and thought process. Thanks