Analyzing Financial Statement Impacts Referring to the information below, indicate the income statement and balance sheet impacts in each case a through e if Walker Corp. failed to record the necessary adjusting entry. a. Interest expense of $120 for the month of December will be paid in January of next year. d. Walker Corp. acquired a two-year insurance policy on January 1 for $3,840 cash that was recorded initially as prepaid insurance. e. Depreciation on equipment is $4,800 for the year. - Note: Use a negative sign with your answers to indicate an understatement