Required Information [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 Adjusting Entries Adjustments Items Credit Debit Credit Cash Accounts receivable Prepaid insurance Equipment mutated depreciation, equipment Income taxes payable Common stock and additional paid-in capital earnings, January 1 Service revenue Salary expense tion expense Insur Inco Debit $13,500 600 170,180 $41,000 107,000 18,260 73,800 55,780 $ 240,000 $240,060 After Adjusting Entries Debit $ 13,500 Credit 490 400 170,180 $ 46,000 1,390 107,000 18,260 74,290 55,780 5.000 200 1,390 $ 246,940 $246.940 2-a. Compute the amount of net income assuming that it is based on the amounts (a) before adjusting entries and (b) after adjusting ontrios Revenues Expenses Total expense Net income (loss) Amounts befor Amments de Musting Enkies Adjusting Entes 2-b. Which net income amount is correct? ONet Income poss) amounts before adjusting entries Net Income Boss) amounts after adjusting entites