[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, 2021, follows, along with information about selected accounts. Account Names Cash Credit Debit $ 3,500 Further Information As reported on December 31 bank statement. Supplies 4,000 Based on count, only $1,150 of supplies still exist. Prepaid Rent 5,100 This amount was paid November 1 for rent through the end of January. Accounts Payable $ 1,350 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. Salaries and Wages Payable 0 Stylists have not yet been paid $200 for their work on December 31. Income Tax Payable 0 The company has paid last year's income taxes but not this year's taxes. Common Stock 1,700 This amount was contributed for common stock in prior years. Retained Earnings 800 This is the balance reported at the end of last year. Service Revenue 70,950 Customers pay cash when they receive services. Salaries and Wages Expense This is the cost of stylist wages through December 30. Utilities Expense This is the cost of utilities through December 15. Rent Expense This year's rent was $1,700 per month. This is the cost of supplies used through November 30. Supplies Expense The company has an average tax rate of Income Tax Expense 25%. Totals 28,800 11,900 17,000 4,500 0 $74,800 $74,800
[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, 2021, follows, along with information about selected accounts. Account Names Cash Credit Debit $ 3,500 Further Information As reported on December 31 bank statement. Supplies 4,000 Based on count, only $1,150 of supplies still exist. Prepaid Rent 5,100 This amount was paid November 1 for rent through the end of January. Accounts Payable $ 1,350 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. Salaries and Wages Payable 0 Stylists have not yet been paid $200 for their work on December 31. Income Tax Payable 0 The company has paid last year's income taxes but not this year's taxes. Common Stock 1,700 This amount was contributed for common stock in prior years. Retained Earnings 800 This is the balance reported at the end of last year. Service Revenue 70,950 Customers pay cash when they receive services. Salaries and Wages Expense This is the cost of stylist wages through December 30. Utilities Expense This is the cost of utilities through December 15. Rent Expense This year's rent was $1,700 per month. This is the cost of supplies used through November 30. Supplies Expense The company has an average tax rate of Income Tax Expense 25%. Totals 28,800 11,900 17,000 4,500 0 $74,800 $74,800
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 5PB: Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet...
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Question
1. Calculate the adjusted net income that the company should report for the year ended December 31, 2021.
2. By what dollar amount did the adjustments in requirement (3) cosmet income to increase or decrease.
![Help
[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, 2021, follows, along with
information about selected accounts.
Account Names
Cash
Credit
Debit
$ 3,500
Further Information
As reported on December 31 bank
statement.
Supplies
4,000
Based on count, only $1,150 of supplies
still exist.
Prepaid Rent
5,100
This amount was paid November 1 for rent
through the end of January.
Accounts Payable
$ 1,350 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.
Salaries and Wages Payable
0
Stylists have not yet been paid $200 for
their work on December 31.
Income Tax Payable
0
The company has paid last year's income
taxes but not this year's taxes.
Common Stock
1,700
This amount was contributed for common
stock in prior years.
Retained Earnings
800
This is the balance reported at the end
of last year.
Service Revenue
70,950
Customers pay cash when they receive
services.
Salaries and Wages Expense
This is the cost of stylist wages through
December 30.
Utilities Expense
This is the cost of utilities through
December 15.
Rent Expense
This year's rent was $1,700 per month.
This is the cost of supplies used through
November 30.
Supplies Expense
The company has an average tax rate of
Income Tax Expense
25%.
Totals
PA4-4 (Algo) Part 4
28,800
11,900
17,000
4,500
0
$74,800
$74,800
Save](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb76c74f-33f9-4776-941a-47446e3aad13%2F72bfbb23-2571-4b35-aa16-188d8bdd6822%2Fpzlbbz8c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Help
[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, 2021, follows, along with
information about selected accounts.
Account Names
Cash
Credit
Debit
$ 3,500
Further Information
As reported on December 31 bank
statement.
Supplies
4,000
Based on count, only $1,150 of supplies
still exist.
Prepaid Rent
5,100
This amount was paid November 1 for rent
through the end of January.
Accounts Payable
$ 1,350 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.
Salaries and Wages Payable
0
Stylists have not yet been paid $200 for
their work on December 31.
Income Tax Payable
0
The company has paid last year's income
taxes but not this year's taxes.
Common Stock
1,700
This amount was contributed for common
stock in prior years.
Retained Earnings
800
This is the balance reported at the end
of last year.
Service Revenue
70,950
Customers pay cash when they receive
services.
Salaries and Wages Expense
This is the cost of stylist wages through
December 30.
Utilities Expense
This is the cost of utilities through
December 15.
Rent Expense
This year's rent was $1,700 per month.
This is the cost of supplies used through
November 30.
Supplies Expense
The company has an average tax rate of
Income Tax Expense
25%.
Totals
PA4-4 (Algo) Part 4
28,800
11,900
17,000
4,500
0
$74,800
$74,800
Save
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