Chapter 6
Corporations: Contributed Capital and Dividends
263
Application Questions Group A
AP-1A (
7
)
At year-end on December 31, 2016, Shuster Home Decor Inc. has accounting income (before
income tax expense calculation) of $102,000. Write the journal entry to record the income tax
expense. Assume the tax rate is 30%.
Date
Account Title and Explanation
Debit
Credit
AP-2A (
8
)
An extract from MC Consulting’s pre-closing trial balance for the year ended December 31,
2016 is shown below. The company’s net income for the year was $82,000.
MC Consulting
Trial Balance (Extract)
December 31, 2016
Account Title
Debit
Credit
Sales Revenue
240,000
Cost of Goods Sold
85,000
Salaries Expense
50,000
Rent Expense
10,000
Income Tax Expense
13,000
