Exercise 2-17 (Algo) Accrual accounting income determination [LO2-5, 2-9] During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2024, you discover net income in 2024 is $40,000 but no adjusting entries have been prepared. To prepare adjusting entries, you discover the following items: a. An insurance policy covering three years was purchased on January 1, 2024, for $6,600. The entire amount was debited to insurance expense. b. During 2024, the company received a $850 cash advance from a customer for services to be provided in 2025. The $850 was credited to sales revenue. c. All purchases of supplies were debited immediately to supplies expense. However, you discover that supplies costing $900 were on hand on December 31. d. Hales borrowed $25,000 from a local bank on October 1, 2024. Principal and interest at 12% will be paid on September 30, 2025. No accrual was recorded for interest. Required: Determine the proper amount of net income for 2024. Note: Amounts to be deducted should be indicated by a minus sign. Unadjusted net income Adjustments: a b. c. d. Adjusted net income $ 0