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 $20,000; the equipment has a life of four years and salvage value at that time of $2,000, and . borrowed $23,000 from a bank, to be repaid on December 31 along with interest of $96 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? A: $-340 OB: $-384 C: $-434 D: $-491 E: $-554 OF: $-626 Submit Answer Tries 0/99