Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and inco statement, as well as additional information, are presented below. Balance Sheet at December 31 Cash Accounts Receivable Prepaid Rent Total Assets Salaries and Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses Net Income Current Year Previous Year $ 4,600 2,000 200 $ 6,800 $ 850 2,200 3,750 $ 6,800 $ 5,450 1,000 100 $ 6,550 $2,100 1,500 2,950 $ 6,550 $ 44,950 40,000 4,150 $ 800 Additional Data: a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $700 cash in exchange for the company's stock.