Va\'s Hair Emporium operates a hair salon. ts unadjusted trial balance as of Dec

Question

Va's Hair Emporium operates a hair salon. ts unadjusted trial balance as of December 31, 2018,follows, along with information about selected accounts. nt Names Debit credit Further Information As reported on December 31 bank statement. Based on count, only $1,300 of supplies still exist. This amount was paid November 1 for rent through the end of January $ 3,800 Cash Supplies Prepaid Rent 4,300 6,000 Accounts Payable $ 1,500 This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $450 of utility services through December 31 for which it has not yet been billed. 0 Stylists have not yet been paid $150 for their work on Salaries and Wages Payable Income Tax Payable Common Stock December 31 year's taxes. years 0 The company has paid last year's income taxes but not this 2,000 This amount was contributed for common stock in prior 900 This is the balance reported at the end of last year. Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense 75,800 Customers pay cash when they receive services. 29,100 12,200 20,000 4,800 0 This is the cost of stylist wages through December 30. This in the cost of utilities through December 15. This year's rent was $2,000 per month. This in the cost of supplies used through November 30. The company has an ave rage tax rate of 306. Totals 80,200 80,200 PA4-4 Part 2 2. Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair Answer is complete but not entirely correct. Related Income Statement Account Amount Supplies Expense (1) Supplies (2) Prepaid Rent (3) Accounts Payable 4)Salaries and Wages Payable (5) Income Tax Payable 3,000 4,000 450 150 2,910 Rent Expense Utilities Expense Salaries and Wages Expense Income Tax Expense

Explanation / Answer

The income tax expense can be calculated by determining income before tax: Service revenue 75800 Expenses: Salaries and wages expense 29250 =29100+150 Utilities expense 12650 =12200+450 Rent expense 24000 =20000+4000 Supplies expense 7800 =4800+3000 Total expenses 73700 Income before tax 2100 Income tax payable = 2100*30%= $630 The correct amount for adjustment 5 is $630

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.