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While examining the financial statements of Mugler Corporation for the year ending December 31, you come across several items that appear wrong and seem to need further consideration, especially having taken BUAD 280. Before any corrections or adjustments are made, net income is $120,000 1. An insurance policy covering 12 months was purchased on October 1 for $24,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in the current year. 2. During the year, the company received a $5,000 cash advance from a customer for services to be performed in the next year. The $5,000 was incorrectly credited to Service Revenue, 3. Mugler Corp. borrowed $90,000 from a local bank on September 1. Principal and interest at 12% will be paid on August 31 in the following year. No accrual was made for interest in the current year Using the information in 1. through 3. above, answer the following questions below: (For numerical answers, include commas (1.) but do not include dollar signs ("S"). For example, if your answer is $1,000, then type "1,000".) What is the correct balance of Prepaid Insurance as of Dec. 312 How much Deferred (Unearned) Revenue remains as of Dec. 312 How much Interest Payable should Mugler record on Dec. 312 Given the corrections/adjustments above, what is the proper amount of net income as of Dec. 317

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