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. Credit Account Names Cash Supplies Prepaid Rent Debit $ 3,600 4,100 5,400 Accounts Payable $ 1,400 Further Information As reported on December 31 bank statement. Based on count, only $1,200 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 $430 of utility services through December 31 for which it has not yet been billed. 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. Salaries and Wages Payable Income Tax Payable Common Stock 1,800 900 72,500 28,900 Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense Totals 12,000 18,000 4,600 This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $1,800 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 25%. $76,600 $76,600 Required: 1. Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2018. VAL'S HAIR EMPORIUM Unadjusted Income Statement (Preliminary) 2. Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair. Adj. Balance Sheet Account Related Income Statement Account Amount |(1) (2) (5) 3. Prepare the adjusting journal entries that are required at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet - 3 4 5 Record the adjusting entry for supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal