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Vals Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts. Account Names

Vals Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.

Account Names Debit Credit Further Information
Cash $ 3,300 As reported on December 31 bank statement.
Supplies 3,800 Based on count, only $1,050 of supplies still exist.
Prepaid Rent 4,500

This amount was paid November 1 for rent through the end of January.

Accounts Payable $ 1,250

This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $400 of utility services through December 31 for which it has not yet been billed.

Salaries and Wages Payable 0

Stylists have not yet been paid $150 for their work on December 31.

Income Tax Payable 0

The company has paid last years income taxes but not this years taxes.

Common Stock 1,500 This amount was contributed for common stock in prior years.
Retained Earnings 900 This is the balance reported at the end of last year.
Service Revenue 67,550 Customers pay cash when they receive services.
Salaries and Wages Expense 28,600

This is the cost of stylist wages through December 30.

Utilities Expense 11,700 This is the cost of utilities through December 15.
Rent Expense 15,000 This years rent was $1,500 per month.
Supplies Expense 4,300

This is the cost of supplies used through November 30.

Income Tax Expense 0 The company has an average tax rate of 30%.
Totals $ 71,200 $ 71,200

  1. Prepare the adjusting journal entries that are required at December 31, 2018.

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