X Company prepares monthly financial statements. The following transactions occurred on October 1: paid the premium for the first year of a $5,000, four-year insurance policy, paid cash for equipment that cost $20,000; the equipment has a life of four years and salvage value at that time of $2,000, and borrowed $29,000 from a bank, to be repaid on December 31 along with interest of $121 per month. The accountant made entries to record the transactions on October 1 and the adjustments on October 31. What was the combined effect of the October 1 and October 31 entries on October Net Income? Submit Answer Tries 0/3