X Company prepares monthly financial statements. The following transactions occurred on October 1: paid the premium for the first year of a $5,000, five-year insurance policy, paid cash for equipment that cost $10,000; the equipment has a life of three years and salvage value at that time of $1,000, and borrowed $21,000 from a bank, to be repaid on December 31 along with interest of $88 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? OA: $-192 B: $-225 C: $-263 OD: $-308 OE: $-360 OF: $-421 Submit Answer Tries 0/99