ABC Corporation Unadjusted Trial Balance December 31, 2021 Debit Credit Cash 442,736 Accounts receivable 300,000 Allowance for doubtful accounts Inventory Allowance to Reduce Inventory to NRV Purchases 350,000 Prepaid insucance 4,167 Land 88,000 Building 500,000 Accumulated depreciation building 16,570 Equipment 260,000 Accumulated depreciation equipment 108,330 Delivery Trucks Accumulated depreciation delivery trucks Investment in XYZ Company Stock 100,000 Patent 200,000 Accounts payable 116,184 Notes payable 100,000 Income taxes payable 47,667 Uneamed cent levele 15,000 Bonds Payable 1,000,000 Premium on Bonds Payable 81,105 Common stock 125,000 PIC In Excess of Par-Common Stock 40,000 Retained eamings Treasury stock 50,000 Dividends 28,000 Sales Revenue 1,050,491 Unrealized Holding Losses/Gains on Trading Secucities-NI Advertising expense 9,240 Wages expense 62,150 Office expense 54,083 Depreciation expense 124,900 Utilities expense 33,571 Insurance expense 45,833 Income taxes expense 47,667 $ 2,700,347 $ 2,700,347 14 Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taxes": Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2022 due date. ABC's income tax rate is 20%. The entire year's income tax expense was estimated at the beginning of 2021 to be $52,000, so January through November income tax expense recognized amounts to $47,667 (11/12 months). Since we are assuming estimates are not paid during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct (.e. the difference between total income tax expense and the amount already accred through November). 14 Do this final adjusting entry after preparing the Income Statement through the line "Income Before Income Taves" Corpoate tase are ne in foue estimated quately payments on April 15, Joe 15 September 15, od December 15 However, for the purposes of this ABC statii, we will me that estimates me not paud, and dust the tax is paid in full on the pacch 15, 2012 due date ABC income tax rate 2018. The entire yend's income tas especie w stated at the beg of 2021 to be $32,000 10 Jadul November income tax exercognised amonia to 547,667(11/12 months) Since we semang tinates are not paid during the year, the balance in locome tases parable ceps icon seed for Jamey though November. Anne no defenced tax assets or defected tas labdities Based on the income before income taxes figue from the one taternent, calcolate and record December's come tax expense adpartment to that the entee year's tax expense conectfie, the difference between total come tax expense and the meat leads aered through November