Ex 4-2: The adjusted trial balance and columns of the worksheet for Savaglia Company are as follows.

Adjusted Trial Balance	Income Statement	Balance Sheet
Account Titles	Debit	Credit	Debit	Credit	Debit	Credit
Cash	10000				10000
Account Receivable	7840				7840
Prepaid Insurance	2280				2280
Equipment	23050				23050
Accumulated Depreciation		4900				4900
Accounts Payable		10620				10620
Owner's Capital		27960				27960
Owner's Drawing	3650				3650
Service Revenue		15590		15590
Depreciation Expense	650		650
Insurance Expense	760		760
Salaries and wages Expense	10840		10840
Total	59070	59070	12250	15590	46820	43480
Net Income			3340			3340
Totals			15590	15590	46820	46820

Consider these questions:

1- Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $18,590, what is the impact on the Income Statement and the Balance Sheet?

2- Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impact on the Income Statement and the Balance Sheet?