Answer:
<em>adjusted income: 92,830</em>
<em>adjusted income: 92,830</em>
<em>adjusted income: 92,830</em>
Explanation:
a) 20,400 contract for a year
20,400 / 12 = 1,700 value per month
from Oct 1st to Dec 31th: 3 months for a total of 5,100 expense
b) we should decrease revenue by 3,400
c) we should reverse 2,450 supplies expense and post under supplies
d) principal x rate x time = interest
64,000 x 0.09 x 4/12 = 1,920 interest expense
94,000 - 5,100 insurance expense + 3,400 unearned revenue +2,450 reversing of supplies expense - 1,920 interest expense
<em>adjusted income: 92,830</em>
