Account Names Debit Credit Further Information Cash $ 3,200 As reported on December 31 bank statement. Based on count, only $1,000 of supplies still exist. This amount was paid November 1 for rent through the ehd of January. This represents supplies and utilities through December 15. Val estimates that the company has received $390 of utility services through December 31 for which it has not vet been billed. Stylists have not yet been paid $200 for their work bn December 31 The company has paid last year's income taxes but not this Supplies Prepaid Rent 3,700 4,200 Accounts Payable 1,200 amount of bills received for the total Salaries and Wages Payable Income Tax Payable C year's taxes. Common Stock This amount was contributed for common stock in prior 1,400 years. This is the balance reported at the end of last year. Customers pay cash when they receive services. Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense 800 66,000 28,500 This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $1,400 per month. This is the cost of supplies used through November 30, The company has an average tax rate of 30%. 11,600 14,000 4,200 Totals $69,400 Y$69,400 4-a. Prepare the adjusted net income that the company should report for the year ended December 31, 2018. 4-b. By what dollar amount did the adjustments in requirement (3) cause net income to increase or decrease