Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2018. The transactions during 2018 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Supplies was $1,050 at December 31, 2018. The unadjusted balance in Supplies Expense was $0 at December 31, 2018. A year-end count showed $200 of supplies on hand. b. Wages earned by employees during December 2018, unpaid and unrecorded at December 31, 2018, amounted to $4,700. The last paychecks were issued December 28; the next payments will be made on January 6, 2019. The unadjusted balance in Salaries and Wages Expense was $50,000 at December 31, 2018. C. A portion of the store's basement is now being rented for $2,100 per month to K. Frey. On November 1, 2018, the store collected six months' rent in advance from Frey in the amount of $12,600. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2018. d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2018 is $3,000, although none has been recorded yet. e. On December 31, 2018, the unadjusted balance in Prepaid Insurance was $3,400. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2018. The unadjusted balance in Insurance Expense was $700, which was the cost of insurance from January 1 to June 30, 2018. f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2018, Frey had not paid for work completed amounting to $850. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2019. Required: For each of the transactions, indicate the amount and direction of effects of the adjusting journal entry on the elements of the accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets Liabilites + Stockholder's Equity Supplies Expense a. Supplies (850) (850) b. c. d. e. f. All of the accounts of the Grass is Greener Company have been adjusted as of December 31, 2018, with the exception of income taxes incurred but not yet recorded. Those account balances appear below. All have normal balances. The estimated income tax rate for the company is 30%. Cash Accounts Receivable Interest Receivable Prepaid Insurance Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Income Tax Payable Salaries and Wages Payable Notes Payable (long-term) Long-Term Debt Common Stock Retained Earnings Dividends Service Revenue Interest Revenue Supplies Expense Repairs and Maintenance Expense Depreciation Expense Rent Expense Income Tax Expense $364,340 779,950 4,950 7,450 12,500 223,400 685,500 139, 300 294,700 90,100 0 27,300 369, 040 242,600 396, 200 217,800 22,600 943,000 127,100 349,200 258,300 60, 350 31,800 Unknown Required: a. Calculate the income before income tax. b. Calculate the income tax expense. c. Calculate the net income. Income Before Income Tax Income Tax Expense Net Income