Required:
	Based on the unadjusted trial balance for The Hairport Salon, Inc. and the adjusting information given below:
	1. Prepare the adjusting journal entries using debits and credits;
	2. After completing the adjusting entries, prepare the Adjusted Trial Balance;
	3. Using the Adjusted Trial Balance, complete the company's Income Statement.
	Adjusting information:
	a. $1,240 of prepaid insurance expired this month.
	b. An inventory count showed $210 of unused shop supplies still available.
	c. Depreciation expense on shop equipment, $350.
	d. Depreciation expense on the building, $2,220.
	e. A customer forgot her wallet, and she promised to return to the shop on January 2nd to pay the $200 bill
	for the services she received.
	f. $800 of the Unearned Rent account balance was earned by year-end.
	g. A part-time employee works a five-day workweek at $50 per day. The employee was paid last week but
	has worked four days this week for which she has not been paid.
	h. Three months property taxes, totaling $450, have accrued and needs to be recorded. The taxes will not be
	paid until the spring.
	i. One months interest on the note payable, $600, has accrued but is unrecorded.
	1. Adjusting Entries
	Accounts	Debit	Credit
	2. Adjusted Trial Balance
	The Hairport Salon, Inc.
	Adjusted Trial Balance
	12/31/2020
		Debit	Credit
	Totals
	3. Income Statement
	The Hairport Salon, Inc.
	Income Statement
	For the Year Ended 12/31/2020
	Net Income

5 5 The Unadjusted Trial Balance of The Hairport Salon, Inc. is presented below: 6 7 8 The Hairport Salon, Inc. Unadjusted Trial Balance 12/31/2020 9 10 Credit Debit $4,200 1,480 990 3,860 $770 57,500 3,840 55,000 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Cash Prepaid insurance Shop supplies Shop equipment Accumulated depreciationshop equipment Building Accumulated depreciationbuilding Land Unearned rent Long-term notes payable Common stock Retained earnings Rent earned Fees earned Wages expense Utilities expense Property taxes expense Interest expense Totals 1,600 50,000 40,000 9,860 2,400 23,400 3,200 690 600 4,350 $131,870 $131,870