Splish Brothers 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:

Accounts payable		$26,000		Interest expense		$4,500
Cash dividendscommon		62,500		Notes payable		116,500
Common shares		200,000		Retained earnings (Aug. 1, 2020)		293,400
Cost of goods sold		318,000		Salaries expense		120,000
Dividends payable		15,600		Sales		679,000
Income tax expense		28,000		Supplies expense		10,500
Income tax payable		4,000		Unearned revenue		11,000

All accounts have normal balances and total assets equal $802,000. Splish Brothers has a 20% income tax rate.

Prepare a multiple-step income statement.

SPLISH BROTHERS INC. Income Statement choose the accounting period Quarter Ended July 31, 2021July 31, 2021Year Ended July 31, 2021
enter an income statement item				$enter a dollar amount
enter an income statement item				enter a dollar amount
select a summarizing line for the first part Gross ProfitProfit Before Income TaxInvestmentsDrawingsEnding Balance, July 31Profit From OperationsOther ExpensesOperating ExpensesProfit/(Loss)Total Operating ExpensesBegninning Balance, August 1				enter a total amount for the first part
select an opening name for section one Ending Balance, July 31Total Operating ExpensesBegninning Balance, August 1Other ExpensesDrawingsGross ProfitOperating ExpensesInvestmentsProfit From OperationsProfit/(Loss)Profit Before Income Tax:
enter an income statement item		$enter a dollar amount
enter an income statement item		enter a dollar amount
select a closing name for section one Total Operating ExpensesOperating ExpensesOther ExpensesGross ProfitProfit Before Income TaxInvestmentsProfit/(Loss)Profit From OperationsBegninning Balance, August 1DrawingsEnding Balance, July 31				enter a total amount for section one
select a summarizing line for the second part Operating ExpensesBegninning Balance, August 1Gross ProfitInvestmentsProfit From OperationsTotal Operating ExpensesDrawingsProfit/(Loss)Profit Before Income TaxEnding Balance, July 31Other Expenses				enter a total amount for the second part
select an opening name for section two Profit Before Income TaxOther ExpensesProfit/(Loss)DrawingsGross ProfitOperating ExpensesProfit From OperationsBegninning Balance, August 1Total Operating ExpensesInvestmentsEnding Balance, July 31:
enter an income statement item				enter a dollar amount
select a summarizing line for the third part Profit Before Income TaxProfit From OperationsDrawingsOperating ExpensesOther ExpensesInvestmentsProfit/(Loss)Begninning Balance, August 1Ending Balance, July 31Gross ProfitTotal Operating Expenses				enter a total amount for all three parts
enter an income statement item				enter a dollar amount
select a closing name for this statement Begninning Balance, August 1Total Operating ExpensesInvestmentsProfit From OperationsGross ProfitOperating ExpensesProfit Before Income TaxDrawingsProfit/(Loss)Ending Balance, July 31Other Expenses				$enter a total profit or loss amount

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List of Accounts

Question Part Score

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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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 31	enter an account title to record income tax expense	enter a debit amount	enter a credit amount
	enter an account title to record income tax expense	enter a debit amount	enter a credit amount
	(To record income tax expense.)