Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information Prior Current Year Year Balance Sheet at December 31 Cash $3,300 $4,000 Accounts receivable 700 500 Prepaid expenses 100 150 350 Accumulated depreciation (50) $4,400 $4.550 Hages payable Short-term note payable 350 300 $1,100 O Common stock 1,000 1,000 Retained earnings 2,750 2.450 $4.400 $4.550 Incone Statement for Current Year. Service revenue $34,000 Depreciation expense 50 Balaries expense 30,000 Other expenses 3,650 Net income 300 Additional Data a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the end of the current year d. At the end of the current year, the company signed a short-term note payable to the bank for $300.