Solution-Prepare required journal entry to adjust income

Prepare required journal entry to adjust income tax expense

Reference no: EM133151989

Question - Larkspur 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	$5,000
Cash dividends-common	55,500	Notes payable	108,500
Common shares	200,000	Retained earnings (Aug. 1, 2020)	309,800
Cost of goods sold	305,500	Salaries expense	144,500
Dividends payable	14,600	Sales	675,500
Income tax expense	25,500	Supplies expense	10,000
Income tax payable	2,400	Unearned revenue	12,200

All accounts have normal balances and total assets equal $803,000. Larkspur has a 20% income tax rate.

Prepare a multiple-step income statement.

Prepare required journal entry to adjust income tax expense.

Reference no: EM133151989

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Prepare required journal entry to adjust income tax expense

Reference no: EM133151989

Reference no: EM133151989

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