Question

Connect 3 (Financial Chapter 4 Homework Var's Hair Emporium operes a hair salon sunausted til balance as of December with information about selected accounts 2015 follows Hong Account Names Credit Cash $ Debit 1.200 3700 4,200 Supplies Prepaid Rent Accounts Payable Further information As reported on December 31 bank statement Based on count only $1000 of supplies still exist This amount was paid November 1 for rent through the end of January This represents the total amount of bills received for supplies and its through December 15. Val estimates that the company has receved $390 of utility services through December 31 for which it has not yet been bed 1200 1400 300 66.000 Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense U s Expense Rent Expense Supples Expense Income Tax Expense Stylists have not yet been paid $200 for the work on December The company has ad last years income taxes but not years to This amount was contributed for common stock como prior years This is the balance reported at the end of last year Customers cash when they receive services 2 500 1600 14,000 This is the cost of stylist wages rough December 30 This is the cost of u s through December 15 This year's rent was $1400 per month This is the cost of supplies used through November The c ar has an average rate of 301 4200

Answer 1

2.

Adj	Balance sheet a/c	Related income statement a/c	Amount
1	Supplies	Supplies expense	2700
2	Prepaid rent	Rent expense	2800
3	Wages payable	Wages expense	200
4	Accounts Payable	Utilities expense	390
5	Income tax payable	Income tax expense	483

Transaction	General Journal	Debit	Credit
a	Supplies expense	2700
	Supplies [3700-1000]		2700
b	Rent expense	2800
	Prepaid rent [1400* 2]		2800
c	Wages expense	200
	Wages payable		200
d	Utilities expense	390
	Accounts Payable		390
e	Income tax expense	483
	Income tax payable		483

Workings:

Service Revenue		66000
Less:Expenses
Salaries and wages [28500+200]	28700
Utilities expense [11600+390]	11990
Rent expense [14000+2800]	16800
Supplies expense [4200+2700]	6900
Total expenses		64390
Profit before tax		1610
Tax @ 30%		483
Profit after tax		1127