How do we find the income tax expense? The answer is supposed to be 426
DND Corporation was created on September 1, 2016. The following transactions occurred during September 2016: Date Description DND was created by a group of investors who invested a total amount of $32,000 cash Sept. I he in exchange for 1,000 shares. receptionist and $2,000for the employes,payable at the end of the month 3 Equipment was purchased on account from MIGK, Ltd. for $12,500 Employed a receptignist and one employee. The monthly salaries are $1 400 for t in amount of $1,300 was paid to rent office space for the months of September and 3 October 2016] This amount does not include utilities which are fixed at $70 per month and payable on October 31, 2016. 4 Purchased from KM Corp. merchandise inventory on account for $10,000, terms 2/10, n/30. 5 Purchased supplies for cash, $900 made on r 4, 2016 10 Paid KM Corp, for the 11 Sold products to TBC, Inc. for $6,000 in cash and $2,000 on account; terms 1/10, n/30. The cost of the products was $3,700 Received the amount due from TBC, Inc Sold products to MTL Corp. for $8,800 on account; terms 1/10, n/30. The cost of the products sold was $3,400 Paid MIGK, Ltd. the amount due for the equipment purchased on September 3,2016 MTL Corp. returned half the products due to a mistake made by DND's employee. 3 I0 14 17 18 The products sold to MTL are identical items. 19 Miscellaneous expenses totaled $200 and will be paid next month. 30 Paid the amounts due to the employees. or the equipment for September amounted to $200. a ry . lies on hand at September 30 had a cost of $570. The income Tax rate for DND is at 20% DND Corporation uses a inventory system. Heng noen DND Corporation was created on September 1, 2016. The following transactions occurred during September 2016: Date Description DND was created by a group of investors who invested a total amount of $32,000 cash Sept. I he in exchange for 1,000 shares. receptionist and $2,000for the employes,payable at the end of the month 3 Equipment was purchased on account from MIGK, Ltd. for $12,500 Employed a receptignist and one employee. The monthly salaries are $1 400 for t in amount of $1,300 was paid to rent office space for the months of September and 3 October 2016] This amount does not include utilities which are fixed at $70 per month and payable on October 31, 2016. 4 Purchased from KM Corp. merchandise inventory on account for $10,000, terms 2/10, n/30. 5 Purchased supplies for cash, $900 made on r 4, 2016 10 Paid KM Corp, for the 11 Sold products to TBC, Inc. for $6,000 in cash and $2,000 on account; terms 1/10, n/30. The cost of the products was $3,700 Received the amount due from TBC, Inc Sold products to MTL Corp. for $8,800 on account; terms 1/10, n/30. The cost of the products sold was $3,400 Paid MIGK, Ltd. the amount due for the equipment purchased on September 3,2016 MTL Corp. returned half the products due to a mistake made by DND's employee. 3 I0 14 17 18 The products sold to MTL are identical items. 19 Miscellaneous expenses totaled $200 and will be paid next month. 30 Paid the amounts due to the employees. or the equipment for September amounted to $200. a ry . lies on hand at September 30 had a cost of $570. The income Tax rate for DND is at 20% DND Corporation uses a inventory system. Heng noen
