Calculate the adjusted net income ---### Required Information**Context:**Val’s Hair Emporium operates a hair salon. Below is the unadjusted trial balance as of December 31, 2021, with additional information regarding selected accounts.**Unadjusted Trial Balance:**| **Account Names** | **Debit** | **Credit** | **Further Information** ||---------------------------------|------------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|| Cash | $4,700 | | As reported on December 31 bank statement. || Supplies | 5,200 | | Based on count, only $1,750 of supplies still exist. || Prepaid Rent | 8,700 | | This amount was paid November 1 for rent through the end of January. || Accounts Payable | | $1,950 | This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $540 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 year’s income taxes but not this year’s taxes. || Common Stock | 2,900 | | 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 | | 90,650 | Customers pay cash when they receive services. || Salaries and Wages Expense | 30,000 | | This is the cost of stylist wages through December 30. || Utilities Expense | 13,100 | | This is the cost of utilities through December 15. || Rent Expense | 29,000 | | This year’s rent was $2,900 per month. || Supplies Expense | 5,700 | | This is the cost of supplies used through November 30. || Income Tax Expense | 0 | **Educational Website Transcription:**### Income Statement Exercise**Instructions:****4-a.** Calculate the adjusted net income that the company should report for the year ended December 31, 2021.**4-b.** By what dollar amount did the adjustments in requirement (3) cause net income to increase or decrease?**Interactive Tabs:**- **Req 4A**- **Req 4B****Income Statement for Val's Hair Emporium**- The table is structured to allow for input of financial figures. Each row likely represents a specific category of income or expense, essential for calculating net income.- Two key totals marked as zero are present, suggesting initial sums to be adjusted with appropriate data.**Graph/Diagram Explanation:**There is no graph or diagram present in the image. The table for input has blue headers and fields designated for entering financial data, providing a clear interface for organizing the information needed to calculate net income adjustments.

Adjusted net income of the business shows all incomes and all expenses of the business and at the…

Answered: Calculate the adjusted net income

Calculate the adjusted net income

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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