Revise the data in your spreadsheet based on the following assumptions, and then answer the questions that follow: Expenses: Advertising Expense $ 14,000 Assets: Cash $ 26,000 Insurance expense 20,000 Accounts receivable 24,000 Salaries expense 49,000 Supplies 15,000 Rent expense 10,000 Land 55,000 Liabilities: Salaries payable 12,000 Revenues: Service revenue 94,000 Notes payable 36,000 Interest revenue 9,000 Dividends: Dividends 9,000 Equity: Common stock 44,000 Retained earnings 27,000 Required:

1. What is the Net Income/(Loss)?

$27,000

$10,000

$13,000

$20,500

Assume the company has an increase in its Salaries Expense of 20% and a decrease in Service Revenue of 15%. Both of which will be settled after the year-end. Adjust and recalculate the balances in the Income Statement and Balance Sheet. All sales are on account.

2. What is the revised balance of the Service Revenue account?

$5,100

$79,900

$13,100

$31,100

3. What is the revised Net Income/(Loss)? $11,900 $(13,900) $17,900 $4,900 4. What is the revised balance in the Retained Earnings account?

$5,500

$10,500

$4,100

$18,500