Question
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 | ||||||
- Prepare the adjusting journal entries that are required at December 31, 2018.
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