X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the appropriate adjusting entries on October 31: 1. On October 1, the company paid rent for the final three months of the year. Rent was $1,250 per month. 2. On October 1, the company purchased equipment that cost $20,000, borrowing the full amount from a bank. The equipment has a life of four years and a salvage value at that time of $2,000. The company will repay the loan on December 31, along with interest at $158 per month. 8. What was the effect of the accountant's entries on total assets? Submit Answer Incorrect. Tries 2/3 Previous Tries 9. What was the effect of the accountant's entries on Net Income in October? $-1,783 You are correct. Previous Tries Your receipt no. is 156-9827