! Required information [The following information applies to the questions displayed below.] Val's Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts. Account Names Cash Supplies Prepaid Rent Accounts Payable Salaries and Wages Payable Debit $ 3,400 3,900 4,800 Credit $ 1,300 0 0 1,600 700 69,400 Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages 28,700 Expense Utilities Expense 11,800 Rent Expense 16,000 Supplies Expense 4,400 Income Tax Expense 0 Totals $73,000 $73,000 Further Information As reported on December 31 bank statement. Based on count, only $1,100 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 $410 of utility services through December 31 for which it has not yet been billed. Stylists have not yet been paid $100 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 $1,600 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 30%. 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?