Hi, I am stuck on an accounting project that I have for mycollege intermediate a

Question

Hi, I am stuck on an accounting project that I have for mycollege intermediate accounting course. I have already donemy unadjusted trial balance (which matches the figure that myprofessor gave me).   I'm getting ready to finish up myAJEs so that I can complete my adjusted trial balance. I amstuck on the AJE regarding income tax. The example we aregiven is a December 31st year-end company that is subject to anincome tax rate of 26%. I know that the AJE will be adebit to Income tax expense and a credit to income taxpayable. However, I can't seem to get the right amount forthe entry. Listed below are my accounts for my first trial balance...I'mnot sure if you need other information or not so please let me knowand I will gladly submit more. ACCOUNT DEBIT CREDIT Cash         668,970 Accounts Receivable         476,100 Equipment         205,000 Rent Deposit          23,000 Accounts Payable     483,840 Dividends Payable       65,000 Note Payable 11% 0 Note Payable 12%     157,994 Common Stock     110,000 Additional Paid-in-Capital     785,000 Dividends          65,000 Sales 3,125,250 Purchases      2,147,200 Rent Expense          92,000 Wages Expense         595,800 Utilities Expense          99,300 Selling Expense         198,600 General & Administrative Expense         132,400 Interest Expense          23,714      TOTALS        4,727,084    4,727,084 If you need specific journal entries please let me know...thisis my first time using cramster :) Thank you so much for your time and help. P.S. for some reason when I copy and paste my work itputs my dividends payable @ 65000 down twice...please ignore that,it's only supposed to be there one time. Hi, I am stuck on an accounting project that I have for mycollege intermediate accounting course. I have already donemy unadjusted trial balance (which matches the figure that myprofessor gave me).   I'm getting ready to finish up myAJEs so that I can complete my adjusted trial balance. I amstuck on the AJE regarding income tax. The example we aregiven is a December 31st year-end company that is subject to anincome tax rate of 26%. I know that the AJE will be adebit to Income tax expense and a credit to income taxpayable. However, I can't seem to get the right amount forthe entry. Listed below are my accounts for my first trial balance...I'mnot sure if you need other information or not so please let me knowand I will gladly submit more. ACCOUNT DEBIT CREDIT Cash         668,970 Accounts Receivable         476,100 Equipment         205,000 Rent Deposit          23,000 Accounts Payable     483,840 Dividends Payable       65,000 Note Payable 11% 0 Note Payable 12%     157,994 Common Stock     110,000 Additional Paid-in-Capital     785,000 Dividends          65,000 Sales 3,125,250 Purchases      2,147,200 Rent Expense          92,000 Wages Expense         595,800 Utilities Expense          99,300 Selling Expense         198,600 General & Administrative Expense         132,400 Interest Expense          23,714      TOTALS        4,727,084    4,727,084 If you need specific journal entries please let me know...thisis my first time using cramster :) Thank you so much for your time and help. P.S. for some reason when I copy and paste my work itputs my dividends payable @ 65000 down twice...please ignore that,it's only supposed to be there one time. ACCOUNT DEBIT CREDIT Cash         668,970 Accounts Receivable         476,100 Equipment         205,000 Rent Deposit          23,000 Accounts Payable     483,840 Dividends Payable       65,000 Note Payable 11% 0 Note Payable 12%     157,994 Common Stock     110,000 Additional Paid-in-Capital     785,000 Dividends          65,000 Sales 3,125,250 Purchases      2,147,200 Rent Expense          92,000 Wages Expense         595,800 Utilities Expense          99,300 Selling Expense         198,600 General & Administrative Expense         132,400 Interest Expense          23,714      TOTALS        4,727,084    4,727,084

Explanation / Answer

Sales 3,125,250.00 Purchases 2,147,200.00 Rent Expense 92,000.00 Wage expense 595,800.00 Utilities Expense 99,300.00 Selling Expenses 132,400.00 General & Administrative 132,400.00 expenses Interest Expense 23,714.00 3,222,814.00 Net Loss (97,564.00) Your Journal entry is correct . However , since there is aloss , the question of Income Tax does not arise . Hence no JE is required . Sales 3,125,250.00 Purchases 2,147,200.00 Rent Expense 92,000.00 Wage expense 595,800.00 Utilities Expense 99,300.00 Selling Expenses 132,400.00 General & Administrative 132,400.00 expenses Interest Expense 23,714.00 3,222,814.00 Net Loss (97,564.00)

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