Prepare a journal entry to adjust income tax expense

NEN CALORATOS FULL SCREEN PRINTER VERSION BACK Exercise 13-7 (Part Level Submission) Shrunk Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2014. The following information has been taken from the adjusted trial balance: Accounts payable $23,000 Interest expense $4.100 Cash dividends-common 61,000 Notes payable 100,000 Common shares 193,000 Retained earnings (Aug 1, 2013) 358,900 Cost of goods sold 308,000 Salaries expense 134,000 Dividends payable 14,000 Sales 663,000 Income tax expense 30,000 Supplies expense 12,000 Income tax payable 3,400 Unearned revenue 12,800 All accounts have normal balances and total assets equal $819.000. Shrunk has a 30% income tax rate. (1) Your answer is correct Prepare a multiple step income statement. SHRUNK INC. Income statement Year Ended July 31, 2014 Sales 663000 Cost of Goods Sold 105000 Year Endea July 31, 2014 Sales 663000 Cost of Goods Sold 308000 Gross Profit 355000 Operating Expenses Profit From Operations 209000 > Other Expenses Interest Expense 4100 Profit Before Income Tax 204900 Income Tax Expense 61470 Net Profit/ (LOS) 143430 (2) Prepare required joumat entry to adjust income tax expense. (Credit account titles are automatically indented when the amount is entered. Do not findent manually. If no antry required, select "No Entry for the account ttles and enter for the amounts) Date Account Titles and Explanation Debit Credit 31 Click If you would like to show Work for this question Open Show Work Attempts of 15 used SUSRETAN 2021 winni 24