Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with all of these PA4-4 ldentifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6] Val's Hair Emporium operates

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Need help with all of these

PA4-4 ldentifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6] Val's Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2015 follows along with information about selected accounts. Account Names Cash Supplies Prepaid Rent Accounts Payable Credit Debit 3,800 4,300 6,000 Further Information As reported on December 31 bank statement. Based on count, only $1,300 of supplies still exist. This amount was paid November 1 for rent through the end of January. This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $450 of utility services through December 31 for which it has not yet been billed. $1,500 Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 29,100 Utilities Expense Rent Expense Supplies Expense Income Tax Expense 0 Stylists have not yet been paid $150 for their work on December 31. The company has paid last year's income taxes but not this year's taxes. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Customers pay cash when they receive services. This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $2,000 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 30%. 0 2,000 900 75,800 12,200 20,000 4,800 Totals $80,200 $80,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Writing A For Accountants

Authors: Claire B. May, Gordon S. May

9th Edition

0132567245, 9780132567244

More Books

Students also viewed these Accounting questions