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 Current Year Previous Year $ 6,560 $ 4,520 980 6,380 (1,660) $ 12,260 $ 620 420 1,600 1,910 5,800 (1,330) $ 10,900 $ 1,200 750 500 5,800 2,650 5,800 3,820 Total Liabilities and Stockholders' Equity $ 12,260 $ 10,900 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Additional Data: a. Bought new hockey equipment for cash, $580. b. Borrowed $1,100 cash from the bank during the year. $ 39,100 36,600 330 1,000 $ 1,170 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.