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cant figure out how to get income tax expense and profit/loss.. Metlock Inc. has recorded all necessary adjusting entries, except for income tax expense, at

cant figure out how to get income tax expense and profit/loss..image text in transcribedimage text in transcribedimage text in transcribed

Metlock Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2021. The following information has been taken from the adjusted trial balance: Accounts payable Cash dividends-common Common shares Cost of goods sold Dividends payable Income tax expense Income tax payable $25,000 58,500 200,000 300,000 14,700 28,500 Interest expense Notes payable Retained earnings (Aug. 1, 2020) Salaries expense Sales Supplies expense Unearned revenue $6,000 118,500 318,400 140,000 659,000 11,500 12,900 2,000 All accounts have normal balances and total assets equal $806,000. Metlock has a 20% income tax rate. Prepare a multiple-step income statement. METLOCK INC. Income Statement Year Ended July 31, 2021 Sales $ 659000 Cost of Goods Sold 300000 Gross Profit 359000 Operating Expenses Salaries Expense $ 140000 i Supplies Expense 11500 i Total Operating Expenses 151500 i Profit From Operations 207500 Other Expenses 4: Interest Expense 6000 i Profit Before Income Tax 201500 Income Tax Expense Profit/(Loss) $

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