#$4$: On May $1,2019$ your company takes out a $2$ year insurance policy covering the period May $1,2019$ through April $30,2021$ for $$2,400$ per year and prepays the entire $$4,800$ amount. The following journal entry is made on May $1$ to record this:

$\frac{5}{01}$ Prepaid Insurance $4,800.$

Cash $4,800$

At year$-$end you discover the following Adjusting journal entry has been made related to this prepaid policy:

$12/31$ Insurance Expense $3,600$

Prepaid Insurance $3,600$

A$.$ The correcting entry to be made on Dec $31$st$.($Assume no entries were made between $\frac{5}{01}$ and the adjusting entry on $\frac{12}{31}$ above$).$

B$.$ The impact$*$ to the $1.$ Income Statement and $2.$ Balance Sheet if this correcting entry in A$.$ above had NOT been made$($ to the $1.$ Income Statement and $2.$ Balance Sheet if this correcting entry in A$.$ above had NOT been made$(*$Impact means either understatement or overstatement to balance sheet and$/$or income statement$)$