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. Debit Account Names Credit Further Information Cash $3,700 4, 200 As reported on December 31 bank statement. Based on count, only $1, 250 of supplies still Supplies exist. Prepaid Rent paid November 5,700 This 1 for amount rent was through the end of January. This Accounts Payable of bills 1,450 the total represents amount received for supplies and utilities through Val estimates that the company December 15. has received $440 of utility services through for which it has December 31 not yet been billed. Stylists have not yet been paid $100 for their Salaries and Wages Payable Income Tax Payable 0 work on December 31. 0 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 Common Stock 1,900 Retained Earnings 700 Service Revenue Salaries and Wages 74,350 of stylist wages through 29,000 the cost December 30. Expense Utilities Expense This is the cost of utilities through December 15. 12,100 19,000 4,700 Rent Expense Supplies Expense This year's rent was $1,900 per month. This is of supplies used through the cost November 30. Income Tax Expense The company has an average tax rate of 25%. $78,400 $78,400 Totals 1. Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2018. VAL'S HAIR EMPORIUM Unadjusted Income Statement (Preliminary) 0 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) (3) (4) (5) Journal entry worksheet 2 3 4 1 Record the adjusting entry for supplies. Note: Enter debits before credits. Transaction Debit Credit General Journal Journal entry worksheet 1 2 3 4 Record the adjusting entry for rent. Note: Enter debits before credits. Transaction General Journal Debit Credit b Journal entry worksheet 1 2 5 Record the adjusting entry for utilities expense. Note: Enter debits before credits. Transaction General Jounmal Debit Credit Journal entry worksheet 1 2 Record the adjusting entry for salaries and wages. Note: Enter debits before credits. Transaction General Journal Debit Credit d Journal entry worksheet 1 2 4 Record the adjusting entry for income tax. Note: Enter debits before credits. General Journal Debit Credit Transaction Complete this question by entering your answers in the tabs below. Req 4A Req 4B Prepare the adjusted net income that the company should report for the year ended December 31, 2018. VAL'S HAIR EMPORIUM Income Statement 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? Complete this question by entering your answers in the tabs below. Req 4A Req 4B By what dollar amount did the adjustments in requirement (3) cause net income to increase or decrease? Net income by
