All of the accounts of the Grass is Greener Company have been adjusted as of Dec

Question

All of the accounts of the Grass is Greener Company have been adjusted as of December 31, 2016, with the exception of income taxes incurred but not yet recorded. Those account balances appear below. Al have normal balances. The estimated income tax rate for the company is 40%. S 361,340 773,950 4,800 7,300 12,200 221,900 682,500 136,900 291,700 88,600 Cash Accounts Receivable Interest Receivable Prepaid Insurance Prepaid Rent Supplies Equipment Accumulated Depreciation--Equipment Accounts Payable Unearned Revenue Income Tax Payable Salaries and Wages Payable Notes Payable (long-term) Long-Term Debt 26,400 366,040 239,600 392,600 215,400 22,000 934.000 124 100 346,200 255.900 59,750 31,500 Unknown Common Stock Retained Earnings Dividends Service Revenue Interest Revenue Supplies Expense Repairs and Maintenance Expense Depreciation Expense Rent Expense ncome Tax Expense Required: a. Calculate the income before income tax. ks ike you haven't started Firefox in a while. Do you want to clean it up for a fresh, like-new experience? And by the way, welcome back Type here to search

Explanation / Answer

a) Income before tax

b) Income tax expense = 364750*40% = $145900

c) Net income = Income before tax-Income tax expense

= 364750-145900

Net income = $218850

Revenue Service revenue 934000 Interest revenue 124100 Total revenue 1058100 Expenses Supplies expense 346200 Repairs and maintenance expense 255900 Depreciation expense 59750 Rent expense 31500 Total expense 693350 Income before tax 364750

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