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 $ 3,500 4,000 5, 100 Accounts Payable $ 1,350 Further Information As reported on December 31 bank statement. Based on count, only $1,150 of supplies still exist. This amount was paid November 1 for rent through the end of January. I This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $420 of utility services through December 31 for which it has not yet been billed. Stylists have not yet been paid $200 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 1,700 800 70, 950 28, 800 Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense Totals 11, 900 17,000 4,500 0 $74,800 This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $1,700 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 25%. $74,800 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? LUUS UUIOW. 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 For the Year Ended December 31, 2018 Revenues 1 70,950 Service Revenue Total Revenues Expenses Salaries and Wages Expense Supplies Expense Income Tax Expense Rent Expense Utilities Expense Total Expenses Net Income Req 48 > Req 4A Req 4B By what dollar amount did the adjustments in requirement (3) cause net income to increase or decrease? Net income Reg 4A RE 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 View journal entry worksheet Transaction General Journal Credit No 1 Debit 2,850 Supplies Expense Supplies 2,850 Rent Expense Prepaid Rent Utilities Expense Accounts Payable Salaries and Wages Expense Salanes and Wages Payable Income Tax Expense Income Tax Payable 5