On December 31, Trinkets Supply Company noted the following transactions that occurred during 2013, some or all of which might require adjustment to the books.

(a) Payment of $4,300 to suppliers was made for purchases on account during the year and was not recorded.

(b) Building and land were purchased on January 2 for $190,000. The building's fair value was $141,000 at the time of purchase. The building is being depreciated over a 30-year life using the straight-line method, assuming no salvage value.

(c) Of the $52,000 in Accounts Receivable, 7% is estimated to be uncollectible. Currently, Allowance for Bad Debts shows a debit balance of $1,100.

(d) On September 1, $80,000 was loaned to a customer on a 12-month note with interest at an annual rate of 11%.

(e) During 2013, Trinkets Supply received $15,200 in advance for services, 80% of which will be performed in 2014. The $15,200 was credited to Sales Revenue.

(f) The interest expense account was debited for all interest charges incurred during the year and shows a balance of $2,300. However, of this amount, $300 represents a discount on a 60-day note payable, due January 30, 2014.

Instructions:

1. Give the necessary adjusting entries to bring the books up to date.

2. Indicate the net change in income as a result of the foregoing adjustments.