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 2. 3. 4. Earned $551,500 of service revenue and incurred $464,000 of operating expenses. Interest expense was $2,700. On October 5, 2020, paid $49,600 of dividends that had been declared on September 25, 2020. On September 28, 2021, declared $40,400 of dividends payable on October 8, 2021. Retained earnings on September 30, 2020, were $227,000. Issued common shares for $22,900 cash on July 2, 2021. 5. (b) 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Sep. 30 (To record income tax expense.) Tamarisk Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2021, there were 32,500 common and 1,600 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings account on January 1, 2021, was $292,500. During 2021, the company had profit of $118,000 and declared a total of $76,000 of dividends, of which $57,000 was paid during the year. Prepare the shareholders' equity section of the balance sheet on December 31, 2021. TAMARISK LIMITED Balance Sheet (Partial) $ $