Val's Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2021,...
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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 Cash Supplies Prepaid Rent Accounts Payable Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense Totals Debit $4,400 4,900 7,800 29,700 12,800 26,000 5,400 0 Credit This amount was paid November 1 for rent through the end of January. $ 1,800 This represents the total amount of bills 0 Stylists have not yet been paid $150 for their work on December 31. 0 Further Information As reported on December 31 bank statement. Based on count, only $1,600 of supplies still exist. The company has paid last year's income. taxes but not this year's taxes. 2,600 This amount was contributed for common 900 85,700 received for supplies and utilities through December 15. Val estimates that the company has received $510 of utility services through December 31 for which it has not yet been billed. $ 91,000 $ 91,000 stock in prior years. This is the balance reported at the end of last year. Customers pay cash when they receive services. This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $2,600 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 25%. Calculate the adjusted net income that the company should report for the year ended December 31, 2021. 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 Cash Supplies Prepaid Rent Accounts Payable Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense Totals Debit $4,400 4,900 7,800 29,700 12,800 26,000 5,400 0 Credit This amount was paid November 1 for rent through the end of January. $ 1,800 This represents the total amount of bills 0 Stylists have not yet been paid $150 for their work on December 31. 0 Further Information As reported on December 31 bank statement. Based on count, only $1,600 of supplies still exist. The company has paid last year's income. taxes but not this year's taxes. 2,600 This amount was contributed for common 900 85,700 received for supplies and utilities through December 15. Val estimates that the company has received $510 of utility services through December 31 for which it has not yet been billed. $ 91,000 $ 91,000 stock in prior years. This is the balance reported at the end of last year. Customers pay cash when they receive services. This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $2,600 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 25%. Calculate the adjusted net income that the company should report for the year ended December 31, 2021.
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Answer rating: 100% (QA)
Supplies As per the information only 1600 of supplies still exist Therefore the supplies used would ... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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