Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information.

Current YearPrevious YearBalance Sheet at December 31 Cash$ 6,560$ 4,520Accounts Receivable9801,910Equipment6,3805,800Accumulated DepreciationEquipment(1,660)(1,330)Total Assets$ 12,260$ 10,900Accounts Payable$ 620$ 1,200Salaries and Wages Payable420750Notes Payable (long-term)1,600500Common Stock5,8005,800Retained Earnings3,8202,650Total Liabilities and Stockholders Equity$ 12,260$ 10,900Income Statement Service Revenue$ 39,100 Salaries and Wages Expense36,600 Depreciation Expense330 Income Tax Expense1,000 Net Income$ 1,170

Additional Data:

1. Bought new hockey equipment for cash, $580.
2. Borrowed $1,100 cash from the bank during the year.
3. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash.