Required Information P4-6 (Algo) Inferring Year-End Adjustments, Computing Earnings per Share and Total Asset Turnover, and Recording Closing Entries LO4-1, 4-3, 4-4 [The following information applies to the questions displayed below.] Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries. Trial Balance, December 31 of the Current Year Before After Adjusting Entries Adjustments Adjusting Entries Items Debit Credit Debit Credit Debit Credit a. Cash $ 14,380 $ 14,3ee b. Accounts receivable 450 C. Prepaid insurance 840 560 d. Equipment 169,789 169,780 e. Accumulated depreciation, equipment $ 41,880 $ 47,880 f. Income taxes payable 1,940 g. Common stock and additional paid-in capital 184,000 184, eee h. Retained earnings, January 1 20,680 20,600 i. Service revenue 73,800 74,250 j. Salary expense 55, 280 55, 280 k. Depreciation expense 5,200 1. Insurance expense 280 m. Income tax expense 1,940 $ 240, 2ee $ 240, 280 $ 247,790 $ 247,790 P4-6 Part 2 2-a. Compute the amount of net income assuming that it is based on the amounts (a) before adjusting entries and (b) after adjusting entries. Amounts before Amounts after Adjusting Entries Adjusting Entries Revenues: Expenses 0 Total expense Net income (loss)