Exercise 3-5A Determine the amount of net income (LO3-1) During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31 , 2021, you come across several items needing further consideration. Currently, net income is $100,000. 1. An insurance policy covering 12 months was purchased on October 1,2021 , for $24,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2. During 2021 , the company received a $4,000 cash advance from a customer for services to be performed in 2022 . The $4,000 was incorrectly credited to Service Revenue. 3. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $2,750 were on hand at December 31,2021 . 4. Trojan borrowed $70,000 from a local bank on September 1, 2021. Principal and interest at 9% will be paid on August 31 , 2022 . No accrual was made for interest in 2021. Required: Using the information in 1 through 4 above, determine the proper amount of net income as of December 31, 2021. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.)