Question

Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.

Required Information [The following information applies to the questions displayed below.) Val's Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts. Credit Account Names Cash Supplies Prepaid Rent Debit $ 4,800 5,300 9,000 Accounts Payable $ 2,000 Further Information As reported on December 31 bank statement. Based on count, only $1,800 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 utilities through December 15. Val estimates that the company has received $550 of utility services through December 31 for which it has not yet been billed. Stylists have not yet been paid $200 for their work on December 31. The company has paid last year's income taxes but not this year's taxes. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Customers pay cash when they receive services. 0 Salaries and Wages Payable Income Tax Payable Common Stock 3,000 800 92,400 30,100 Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense Totals 13,200 30,000 5,800 0 $98,200 This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $3,000 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 208. $98,200

Answer 1

The unadjusted trial balance prepared considering balances at the end of a reporting period, before any adjusting entries are made to the balances to create financial statements. This is calculatedget an idea of your profit before making adjusting entries however profit may dramatically change if remaining adjustment are material.

Vala's Hair Emporium
Unadjusted Net Income Statement (Preliminary)
For the year ended December 31 2018
	Service Revenue		92,400.00
Less	Expenses
	Salaries & Wages	30,100.00
	Utilities Expenses	13,200.00
	Rent Expenses	30,000.00
	Supplies Expenses	5,800.00
	Total Expenses		79,100.00
	Net Income		13,300.00

Even though not specifically asked in question i am also providing adjusted P&L :

Vala's Hair Emporium
Net Income Statement
For the year ended December 31 2018				Basis
	Service Revenue		92,400.00
	Expenses
	Salaries & Wages	30,300.00		200 wages Accrual to be accounted
	Utilities Expenses	13,750.00		550 Accrual to be made
	Rent Expenses	36,000.00		6000 needs to be transferred from prepaid
	Supplies Expenses	9,300.00		3500 needs to be expenses out as supplies consumption seems not accounted (5300-1800)
	Total Expenses		89,350.00
	Net Income		3,050.00
	Taxes		610.00	(Tax =3050*20%
	Net Income after taxes		2,440.00