Question
In: Accounting
Val’s Hair Emporium is a hair salon. Its unadjusted trial balance as of December 31, 2017,...
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 | $ | 47,500 | As reported on December 31 bank statement. | |||||
| Supplies | 11,900 | Based on count, only $5,100 of supplies still exist. | ||||||
| Prepaid Rent | 17,400 | This amount was paid November 1 for rent through the end of January. | ||||||
| Accounts Payable | $ | 3,400 |
This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $1,400 of utility services through December 31 for which it has not yet been billed. |
|||||
| Wages Payable | 0 | Stylists have not yet been paid $340 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 | 3,900 | This amount was contributed to the company in prior years. | ||||||
| Retained Earnings | 4,700 | This is the balance reported at the end of last year. | ||||||
| Hair Styling Revenue | 189,800 | Customers pay cash when they receive services. | ||||||
| Wages Expense | 38,600 | This is the cost of stylist wages through December 30. | ||||||
| Utilities Expense | 17,900 | This is the cost of utilities through December 15. | ||||||
| Rent Expense | 58,000 | This year’s rent was $5,800 per month. | ||||||
| Supplies Expense | 10,500 | 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 | $ | 201,800 | $ | 201,800 | ||||
Required:
1. Calculate the (preliminary) unadjusted net income for
the year ended December 31, 2017.
2 Name the five pairs of balance sheet and income statement
accounts that require adjustment.
3 Name the five pairs of balance sheet and income statement accounts that require adjustment.
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.)
5-a. Calculate the adjusted net income that the
company should report for the year ended December 31, 2017.
5-b. By how much did the adjustments in
requirement (4) cause net income to increase or decrease?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Val’s Hair Emporium is a hair salon. Its unadjusted trial balance as of December 31, 2017,...
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
$
3,800
As reported on December 31 bank statement.
Supplies
4,300
Based on count, only $3,200 of supplies still exist.
Prepaid Rent
6,000
This amount was paid November 1 for rent through the end of
January.
Accounts Payable
$
1,500
This represents the total amount of bills received for supplies...
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018,...
Val’s Hair Emporium operates a hair salon. Its unadjusted trial
balance as of December 31, 2018, follows, along with information
about selected accounts.
Account Names
Debit
Credit
Further Information
Cash
$
4,800
As reported on December 31 bank statement.
Supplies
5,300
Based on count, only $1,800 of supplies still exist.
Prepaid Rent
9,000
This amount was paid November 1 for rent through the end of
January.
Accounts Payable
$
2,000
This represents the total amount of bills received for supplies...
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.
Account Names
Debit
Credit
Further Information
Cash
$
4,800
As reported on December 31 bank statement.
Supplies
5,300
Based on count, only $1,800 of supplies still exist.
Prepaid Rent
9,000
This amount...
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.
Account Names
Debit
Credit
Further Information
Cash
$
4,000
As reported on December 31 bank statement.
Supplies
4,500
Based on count, only $1,400 of supplies still exist.
Prepaid Rent
6,600
This amount...
The unadjusted trial balance for Sunland Engineering at its year end, December 31, 2017, is as...
The unadjusted trial balance for Sunland Engineering at its year
end, December 31, 2017, is as follows: SUNLAND ENGINEERING Trial
Balance December 31, 2017 Debit Credit Cash $8,400 Accounts
receivable 5,850 Supplies 4,750 Prepaid insurance 7,560 Notes
receivable 12,300Equipment 27,400Accumulated depreciation—equipment
$8,220 Accounts payable 4,600 H. Duguay, capital 39,440 H. Duguay,
drawings 52,500 Service revenue 106,000 Salaries expense 39,500
$158,260 $158,260 Additional information: 1. Revenue of $10,550 was
earned but unrecorded and uncollected as at December 31, 2017. 2.
On...
The unadjusted trial balance for Forever Fitness as December 31, 2017 is provided on the trial...
The unadjusted trial balance for Forever Fitness as December 31,
2017 is provided on the trial balance tab.
Information for adjustments is as follows:
As of December 31, 2017, employees had earned $1,300 of unpaid
and unrecorded salaries. The next payday is January 4, at which
time $1,625 of salaries will be paid.
The cost of supplies still available at December 31, 2017, is
$1,700.
The notes payable requires an interest payment to be made every
three months. The amount...
JC’s Company’s unadjusted and adjusted trial balances at December 31, 2017, follow. Unadjusted trial Balance DR...
JC’s Company’s unadjusted and
adjusted trial balances at
December 31, 2017, follow.
Unadjusted trial
Balance
DR
CR
Cash
105,000
Prepaid Rent
60,000
Supplies
38,000
Office furniture
460,000
Accumulated dep office furniture
92,000
Accounts payable
102,500
Salaries payable
Unearned service revenue
15,900
SWT, Capital
453,000
SWT, Drawing
15,400
Service revenue
205,000
Salaries expense
110,000
Depreciation expense
Supplies Expense
Rent Expense
80,000
868,400
868,400
Adjusted Trial
Balance
DR
CR
Cash
105,000
Prepaid Rent
20,000
Supplies
19,500
Office furniture
460,000
Accumulated dep office...
The unadjusted trial balance of the Dairy Plus Company as of December 31, 2017 is found...
The unadjusted trial balance of the Dairy Plus Company as of
December 31, 2017 is found on the trial balance tab. The following
information is required to prepare the necessary adjusting entries
for the Dairy Plus Company.
1) The balance in Prepaid insurance represents a 24-month policy
that went into effect on December 1, 2017. Review the unadjusted
balance in Prepaid insurance, and prepare the necessary adjusting
entry, if any.
2) Based on a physical count, supplies on hand total...
The unadjusted trial balance of the Home Perfection Company as of December 31, 2017 is found...
The unadjusted trial balance of the Home Perfection Company as
of December 31, 2017 is found on the trial balance tab. The
following information is required to prepare the necessary
adjusting entries for the Home Perfection Company.
1) The balance in Prepaid insurance represents a 24-month policy
that went into effect on December 1, 2017. Review the unadjusted
balance in Prepaid insurance, and prepare the necessary adjusting
entry, if any.
2) Based on a physical count, supplies on hand total...
Porter Company shows the following accounts in its partial unadjusted trial balance at December 31, 2017....
Porter Company shows the following accounts in its partial
unadjusted trial balance at December 31, 2017. Dr Cr Cash $71,300
Accounts receivable 40,000 Trading securities 7,000 Available for
sale securities 50,000 Allowance for Doubtful accounts 2,000
Furniture and Fixtures 181,000 Accumulated depreciation – F&F
14,000 Accounts Payable 10,800 Common Stock 104,000 Retained
Earnings 75,000 Service Revenue 324,100 Insurance expense 11,300
Salaries Expense 149,700 Rent Expense 15,600 TOTALS $527,900
$527,900 Additional Information 1. On May 1, 2017, the company paid
$8,700...
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