Dive In Company was started several years ago by two diving instructors. The companys comparative balance sheets and income statement are presented below.

Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Prepaid Expenses $ 5,720 $6,610 1,400 140 2,800 280 $ 8,800 $8,150 Common Stock Retained Earnings Salaries and Wages Payable 1,250 $2,900 1,900 3,350 3,000 4,550 $ 8,800 $8,150 Income Statement Service Revenue Salaries and Wages Expense Other Operating Expenses $53,750 48,000 4,550 Net Income $ 1,200 Additional Data: a. Prepaid Expenses relate to rent paid in advance b. Other Operating Expenses were paid in cash. c. An owner contributed capital by paying $1,100 cash in exchange for the company's stock