One year ago, Tyler Stasney founded Swift Classified Ads. Stasney remembers that you took an accounting course while in college and comes to you for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist of the T-accounts from his ledger, which were prepared by an accountant who moved to another city. The ledger at December 31 follows. The accounts have not been adjusted.Stasney indicates that at year-end, customers owe the business $1,600 for accrued service revenue. These revenues have not been recorded. During the year, Swift Classified Ads collected $4,000 service revenue in advance from customers, but the business earned only $900 of that amount. Rent expense for the year was $2,400, and the business used up $1,700 of the supplies. Swift determines that depreciation on its equipment was $5,000 for the year. At December 31, the business owes an employee $1,200 accrued salary.Help Swift Classified Ads compute its net income for the year. Advise Stasney whether to continue operating Swift Classified Ads.

Cash	Account payable	Stasney capital	Salaries expense
Dec. 31	5800			21,500	Dec 31		20,000		De c 31	17000
Accounts Receivable		Unearned Revenue	Stasney, Withdrawals	Depreciation ExpenseEquipment
Dec. 31	12000			4,000	Dec. 31	Dec. 31	28000
Prepaid Rent		Salaries Payable	Service Revenue	Rent Expense
Jan 2	2800						59500	Dec. 31
Office Supplies			Utilities Expense
Jan 2	2600		Dec31	800
Equipment		Supplies Expense
Jan 2	36000
Accumulated DepreciationEquipment