ed several years ago by two diving instructors. The company's comparative Dive In Company was start balance sheets and income statement are presented belovw Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Prepaid Expenses $ 4,740 $5,595 2,100 1,050 105 210 $ 7,050 $6,750 Salaries and Wages Payable 900 $2,200 2,300 1,550 Common Stock Retained Earnings 3,850 3,000 $ 7,050 $6,750 Income Statement Service Revenue Salaries and Wages Expense Other Operating Expenses $46,050 41,000 4.200 $ 850 Net Income 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 $750 cash in exchange for the company's stock