Learn to Play, Inc., is a one-person company that provides private piano lessons. Its unadjusted trial balance at December 31, 2013, follows along with information about selected accounts.

Further Information
As reported on December 31 bank statement.
Based on count, only $200 of supplies still exist.
Of this amount, $500 was received for December lessons and $1,000 for January lessons.
The employee was paid $500 for 10 days of work through December 29.
She has not yet been paid for work on December 30 and 31.
The company has paid last year's income taxes but not this year's taxes.
The company has not paid the $100 of interest owed on its note payable for the current period.
This one-year note was taken out this year on December 1.
This amount was contributed to the company in prior years.
This is the balance reported at the end of last year.
Most customers pay cash for lessons each time they are provided, but some customers paid in advance.
The company's employee worked through December 31.
This is the cost of supplies used through November 30.
The company has not paid the $100 of interest owed on its note payable for the current period.
The company has an average tax rate of 30%.
Required:
1. Calculate the (preliminary) unadjusted net income for the year ended December 31, 2013.
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, 2013.
5. Calculate the adjusted net income that the company should report for the year ended December 31, 2013. By how much did the adjustments in requirement (4) cause net income to increase or decrease?

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Account Names Debit Credit Cash $23,800 300 Unearned Revenue $ 1,500 Wages Payable Income Tax Payable Interest Payable 0 0 Note Payable Contributed Capital Retained Earnin Service Revenue 12,000 1,000 3,000 25,500 18,100 800 se Interest Expense 0 Income Tx Expense Totals $43,000 $43,000