Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2015, follows along with information about selected accounts.

Required:
1. Calculate the (preliminary) unadjusted net income for the year ended December 31, 2015.
2. Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair.
3. Prepare the adjusting journal entries that are required at December 31, 2015.
4. Calculate the adjusted net income that the company should report for the year ended December 31, 2015. By how much did the adjustments in requirement (3) cause net income to increase or decrease?