US Wayqandt, Accounting Principles, Seventh Canadian Edition, Volume 2 PRINTER VERSION 4 BACK NEXT Exercise 13-6 (Part Level Submission) Sage Hill Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2017. The following information has been taken from the adjusted trial balance: Accounts payable Cash dividends-common Common shares Cost of goods sold Dividends payable Income tax expense Income tax payable $22,000 57,000 190,000 315,000 16,000 28,000 2,900 Interest expense $4,300 Notes payable 110,000 Retained earnings (Aug. 1, 2016) 342,800 Salaries expense 134,000 Sales 660,000 Supplies expense 12,000 Unearned revenue 12,600 All accounts have normal balances and total assets equal $806,000. Sage Hill has a 21% income tax rate. (al) Your answer is partially correct. Try again. Prepare a multiple-step income statement. (Round answer to 0 decimal places, e.g. 5,276.) SAGE HILL INC. Income Statement Year Ended July 31, 2017 Sales 660,000 Cost of Goods Sold 315,000 Gross Profit 345,000 Operating Expenses > Salaries Expense 134,000 4 Supplies Expense 12,000 Total Operating Expenses 146,000 Doporoo spoo Total Operating Expenses 146,000 Profit From Operations 199,000 > Other Expenses Interest Expense 4,300 Profit Before Income Tax 194,700 > Income Tax Expense 133,333 Net Profit/ (Loss) 19,560 Attempts: 15 of 15 used (a2) Your answer is partially correct. Try again. 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. Round answer to 0 decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit July 31 Income Tax Expense Income Tax Payable Attempts: 2 of 15 used