During the course of your examination of the financial statements of Trojan Corporation for the year ended

Question:

During the course of your examination of the of Trojan for the year ended December 31, 2012, you come across several items needing further consideration. Currently, net income is $90,000.
a. An insurance policy covering 12 months was purchased on October 1, 2012, for $18,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2012.
b. During 2012, the company received a $3,000 cash advance from a customer for services to be performed in 2013. The $3,000 was incorrectly credited to Service Revenue.
c. There were no supplies listed in the under assets. However, you discover that supplies costing $2,250 were on hand at December 31, 2012.
d. Trojan borrowed $60,000 from a local bank on September 1, 2012. Principal and interest at 12% will be paid on August 31, 2013. No accrual was made for interest in 2012.
Required:
Using the information in a. through d. above, determine the proper amount of net income as of December 31, 2012?
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