Sage Hill 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: $26,000 62,500 Accounts payable Cash dividends-common Common shares Cost of goods sold Dividends payable Income tax expense Income tax payable 200,000 300,500 Interest expense Notes payable Retained earnings (Aug. 1, 2020) Salaries expense Sales Supplies expense Unearned revenue $5,500 108,500 302,500 120,500 678,000 10,000 12,200 14,300 34,500 2,500 All accounts have normal balances and total assets equal $810,500. Sage Hill has a 20% income tax rate. Prepare a multiple-step income statement. SAGE HILL INC. Income Statement SAGE HILL INC. Income Statement V $ $ $ Prepare required journal entry to adjust income tax expense. (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.) Debit Credit Date Account Titles and Explanation July 31 (To record income tax expense.)