Pharoah Ltd. has a September 30 fiscal year end and a 15% income tax rate. The following information is available for its 2021 year end:

1.		Earned $491,500 of service revenue and incurred $408,000 of operating expenses. Interest expense was $2,500.
2.		On October 5, 2020, paid $49,300 of dividends that had been declared on September 25, 2020.
3.		On September 28, 2021, declared $41,000 of dividends payable on October 8, 2021.
4.		Retained earnings on September 30, 2020, were $237,000.
5.		Issued common shares for $20,100 cash on July 2, 2021.

Prepare an income statement.

PHAROAH LTD. Income Statement September 30, 2021Year Ended September 30, 2021Quarter Ended September 30, 2021
		$
Profit / (Loss)Gross ProfitCash Dividends DeclaredInvestmentsProfit Before Income TaxRetained Earnings, September 30, 2021Profit From OperationsRetained Earnings, October 1, 2020Other Expenses
Retained Earnings, September 30, 2021Gross ProfitInvestmentsProfit Before Income TaxRetained Earnings, October 1, 2020Cash Dividends DeclaredOther ExpensesProfit / (Loss)Profit From Operations
Profit Before Income TaxRetained Earnings, September 30, 2021Gross ProfitOther ExpensesProfit From OperationsInvestmentsProfit / (Loss)Cash Dividends DeclaredRetained Earnings, October 1, 2020		$

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List of Accounts

Question Part Score

--/5

Journalize the adjustment for income tax assuming no income tax instalments were made during the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Sep. 30
	(To record income tax expense.)

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Question Part Score

--/2

Prepare a statement of retained earnings. (List items that increase retained earnings first.)

PHAROAH LTD. Statement of Retained Earnings September 30, 2021Year Ended September 30, 2021Quarter Ended September 30, 2021
Gross ProfitRetained Earnings, September 30Cash Dividends DeclaredProfit From OperationsOther ExpensesProfit Before Income TaxRetained Earnings, October 1, 2020Profit / (Loss)Investments		$
AddLess: Retained Earnings, October 1, 2020Profit / (Loss)Gross ProfitProfit From OperationsInvestmentsOther ExpensesRetained Earnings, September 30Cash Dividends DeclaredProfit Before Income Tax
AddLess: Other ExpensesRetained Earnings, September 30Retained Earnings, October 1, 2020Profit / (Loss)Cash Dividends DeclaredInvestmentsProfit Before Income TaxGross ProfitProfit From Operations
Profit From OperationsCash Dividends DeclaredProfit / (Loss)Retained Earnings, September 30Gross ProfitInvestmentsProfit Before Income TaxRetained Earnings, October 1, 2020Other Expenses		$