Response to the following problem:
Garden Hospital paid a three-year insurance premium of $3,600 in advance on January 1, 20X1, debiting the $3,600 to the prepaid account. At the end of the year, the necessary adjusting entry was not made, and the omission was not discovered.
What effect would this error have on total assets, total liabilities, and hospital net assets, as reported in the hospital's balance sheet for December 31, 20X1?