Val’s Hair Emporium is a hair salon. Its unadjusted trial balance as of December 31, 2017, follows, along with information about selected accounts.     Account Name Debit Credit Further Information     Cash $ 22,200         As reported on December 31 bank statement.     Supplies   7,500         Based on count, only $4,000 of supplies still exist.     Prepaid Rent   10,800         This amount was paid November 1 for rent through the end of January.     Accounts Payable       $ 2,300   This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $850 of utility services through December 31 for which it has not yet been billed.     Wages Payable         0   Stylists have not yet been paid $230 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.     Contributed Capital         2,800   This amount was contributed to the company in prior years.     Retained Earnings         2,500   This is the balance reported at the end of last year.     Hair Styling Revenue         123,800   Customers pay cash when they receive services.     Wages Expense   33,100         This is the cost of stylist wages through December 30.     Utilities Expense   14,600         This is the cost of utilities through December 15.     Rent Expense   36,000         This year’s rent was $3,600 per month.     Supplies Expense   7,200         This is the cost of supplies used through November 30.     Income Tax Expense   0         The company has an average tax rate of 30 percent.                        Totals $ 131,400   $ 131,400                              Required: 1. Nothing to answer here.   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, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Val’s Hair Emporium is a hair salon. Its unadjusted trial balance as of December 31, 2017, follows, along with information about selected accounts.
 

  Account Name Debit Credit Further Information  
  Cash $ 22,200         As reported on December 31 bank statement.  
  Supplies   7,500         Based on count, only $4,000 of supplies still exist.  
  Prepaid Rent   10,800         This amount was paid November 1 for rent through the end of January.  
  Accounts Payable       $ 2,300  

This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $850 of utility services through December 31 for which it has not yet been billed.

 
  Wages Payable         0   Stylists have not yet been paid $230 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.  
  Contributed Capital         2,800   This amount was contributed to the company in prior years.  
  Retained Earnings         2,500   This is the balance reported at the end of last year.  
  Hair Styling Revenue         123,800   Customers pay cash when they receive services.  
  Wages Expense   33,100         This is the cost of stylist wages through December 30.  
  Utilities Expense   14,600         This is the cost of utilities through December 15.  
  Rent Expense   36,000         This year’s rent was $3,600 per month.  
  Supplies Expense   7,200         This is the cost of supplies used through November 30.  
  Income Tax Expense   0         The company has an average tax rate of 30 percent.  
                  
  Totals $ 131,400   $ 131,400      
                  
   


Required:
1.
Nothing to answer here.
 



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, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)


 
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