Creative Consulting used accrual basis accounting to calculate net income for January II. 2014. Determine the amount and sign or of the change in its net income ifcash basis accounting had been used for each of the following items. If no adjustment is necessary write "N/A." Activity Change a. Creative collected $50,000 in December 2013 for January 2014 services and $250,000 in January for January Services b. Wages paid during the month totaled $90,000. $5000 of the January expense will be paid in February c. Paid $6,000 on 1/1/14 for office equipment to be used over five-years d. Declared $7,500 of dividends on 1/25 to be paid on 2/15. e. On January 1, Creative borrowed $30,000 from Iowa City Bank and Trust. Interest and principal on the 5% note are due on April 1, 2014 f. Purchased office supplies on account for $1,500. Physical counts showed $600 of supplies was on hand at 1/1 and $400 was on hand at 1/31 g. Creative wrote off $3,500 of accounts receivable during January. The allowance for doubtful accounts had a balance of $5,500 at 1/1 and $2,800 at 1/31 h. Paid $3,600 on November 1, 2013 for six-months of insurance coverage on company owned vehicles. i. Received a $40,000 prepayment on a consulting contract. Work will begin in February 2014 j. Other operating expenses totaled $48,000. January payments were $79,000. k. Creative signed a four-year $100,000 contract with the Iowa City Chamber of Commerce on 1/15/14. Work is to commence on 4/1/14