Required information [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 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. $ 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. 0 Stylists have not yet been paid $150 for Accounts Payable Salaries and Wages Payable their work on December 31. The company has paid last year's income taxes but not this year's taxes. Income Tax Payable 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 This is the cost of utilities through December 15. 13,100 This year's rent was $2,900 per month. This is the cost of supplies used through Rent Expense 29,000 Supplies Expense 5,700 November 30.
Required information [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 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. $ 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. 0 Stylists have not yet been paid $150 for Accounts Payable Salaries and Wages Payable their work on December 31. The company has paid last year's income taxes but not this year's taxes. Income Tax Payable 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 This is the cost of utilities through December 15. 13,100 This year's rent was $2,900 per month. This is the cost of supplies used through Rent Expense 29,000 Supplies Expense 5,700 November 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
adjustment for each pair
![Required Information
[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 | 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 | | The company has an average tax rate of](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F47de7bbc-c2d0-4fee-bbea-c7bfeb095d9e%2Fb42a977a-1703-496d-b927-2358334b70d2%2Fi4sj1zt_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[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 | 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 | | The company has an average tax rate of
Transcribed Image Text:**Question 2:**
Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair.
**Table Details:**
- **Column Headers:**
1. **Adjustment**
2. **Balance Sheet Account**
3. **Related Income Statement Account**
4. **Amount**
- **Row Entries:**
1. Adjustment (1)
2. Adjustment (2)
3. Adjustment (3)
4. Adjustment (4)
5. Adjustment (5)
Each row is meant to be filled with specific adjustments, detailing the involved balance sheet and income statement accounts along with the corresponding adjustment amount.
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