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X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the...

X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the appropriate adjusting entries on October 31:
On October 1, the company paid rent for the final three months of the year. Rent was $1,225 per month.
On October 1, the company purchased equipment that cost $10,000, borrowing the full amount from a bank. The equipment has a life of three years and a salvage value at that time of $1,000. The company will repay the loan on December 31, along with interest at $108 per month.

1.What was the effect of the accountant's entries on total assets?
2. What was the effect of the accountant's entries on Net Income in October?
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