Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Current Year Previous Year $ 4,040 $ 6,120 860 5,060 (1,420) $ 10,620 $ 740 540 1,670 4,600 (1,210) $ 9,100 $ 1,200 750 1,600 500 4,600 4,600 3,140 2,050 $ 10,620 $ 9,100 $ 40,300 37,800 210 1,200 $ 1,090 Additional Data: a. Bought new hockey equipment for cash, $460. b. Borrowed $1,100 cash from the bank during the year. c. 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.