Question

Credit Account Names Cash Supplies Deferred Revenue Debit $31,600 540 $ 3,170 Salaries and Wages payable @ Income Tax Payable Interest Payable Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Further Information As reported on December 31 bank statement. Based on count, only $170 of supplies still exist. Of this amount, $2,700 was received for December lessons and $470 for January lessons. Employees were paid $2,300 for 10 days of work through December 28. They have not yet been paid for work on December 29 and 30. The company has paid last year's income tax but not this year's tax. The company has not paid the $105 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common stock 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 pay in advance. Employees worked through December 30, but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $105 of interest owed on its notes payable for the current period. The company has an average tax rate of 20%. 12,600 1,000 2,700 50,57e Salaries and Wages Expense 35,Bee Supplies Expense Interest Expense 2, 10e e Income Tax Expense Totals $70,040 $78,040

need the income tax expense and income tax payable.

Answer 1

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Solution Date NO Transcation Dr. cr. a General Journal Supplies Expense Supplies 370 370 2 b Delovurd Revenue 2,700 Service Revenue 2,700 С C 460 ubo 4 d Salaries and wages Exp. Salaries and wages Paychle Interest Expense Interest Payable Income Tax Expense 2,887 Income Tax Payable 105 105 5 е e 2,887 Working Note: los Service devenue (59570 +2,700) 33,270 Expenses: Salaries and weges expenses (35,800+ 460) 36,260 Supplies Expenses (2,100+370) 2470 Interest Expenses Total Expenses. 38,835 38,835 Income Before income Tax 14,435 Income Tax Expense = 14,435x20% 2,887 Scanned by TapScanner