Val's Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2013, follows along with information about selected accounts.

Further Information
As reported on December 31 bank statement.
Based on count, only $1,300 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 $450 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 to the company in prior years.
This is the balance reported at the end of last year.
Customers pay cash when they receive services.
This is the cost of stylist wages through December 30.
This is the cost of utilities through December 15.
This year's rent was $2,000 per month.
This is the cost of supplies used through November 30.
The company has an average tax rate of 30%.
Required:
1. Calculate the (preliminary) unadjusted net income for the year ended December 31, 2013.
2. Name the five pairs of balance sheet and income statement accounts that require adjustment.
3. Calculate the desired balances for each account listed in the unadjusted trial balance.
4. Prepare the adjusting journal entries that are required at December 31, 2013.
5. Calculate the adjusted net income that the company should report for the year ended
December 31, 2013. By how much did the adjustments in requirement (4) cause net income to increase or decrease?

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Account Names Debit Credit $ 3,800 4,300 6,000 Cash Prepaid Rent Accounts Payable $1,500 Wages Payable Income Tax Payable Contributed Capital Retained Earnin Service Reve 0 0 2,000 900 5,800 nue 29,100 12,200 20,000 4,800 0 $80,200 Utilities Expense Rent Expense ncome Tax Expense Totals $80,200