The firms accounts in alphabetical order are as follows after all the transactions have been properly recorded for the year. The books have not been closed yet thats why the revenues and expenses are not yet zeroed out this means that the retained earnings have also not yet been adjusted for Net Income or for dividends which were equal to 2.

Prepare the Income Statement and the Balance Sheet. You should be able to figure out what the tax expense is given all other information. Hint first you need to figure out what the ending balance of Retained Earnings will be and work back from that (you will need to remember the balance sheet equation and after you have figured out the Retained Earnings youll need to take into account the dividend information I gave you).

Accounts Payable 70

Accounts Receivable 50

Cash 100

COGS 40

Contributed Capital 100

Interest Expense 10

Inventory 20

Long Term Debt 130

PPE 200

Prepaid Asset 30

Retained Earnings 80 (this is balance in RE as of beginning of the period no changes yet made to this account)

Revenues 100

SG&A Expense 20

Tax Expense ?