X Company prepares monthly financial statements. The following transactions occurred on September 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 $27,000 from a bank, to be repaid on December 31 along with interest of $112 per month. The accountant made entries to record the transactions on September 1 and the adjustments on September 30. What was the combined effect of the September 1 and September 30 entries on September Net Income? OA: $-591 OB: $-786 OC: $-1,046 OD: $-1,391 E: $-1,850 OF: $-2,460 Submit Answer Tries 0/99