Chapter 6
Corporations: Contributed Capital and Dividends
289
Application Questions Group B
AP-1B (
7
)
At year-end on December 31, 2016, F’Brae Cheerleading Inc. has accounting income of
$210,000. Write the journal entry to record the income tax expense. Assume the tax rate is
30%.
Date
Account Title and Explanation
Debit
Credit
AP-2B
(
8
)
Aniston Corporation has the following trial balance at the end of its fiscal year.
Aniston Corporation
Trial Balance
For the Year Ended December 31, 2016
Account Title
Debit
Credit
Cash
$51,000
Accounts Receivable
42,000
Prepaid Insurance
5,000
Accounts Payable
$36,000
Unearned Revenue
4,000
Common Shares
30,000
Retained Earnings
6,300
Sales Revenue
162,000
Cost of Goods Sold
72,900
Insurance Expense
2,700
Rent Expense
16,000
Salaries and Wages Expense
38,000
Depreciation Expense
2,300
Income Tax Expense
8,400
Totals
$238,300 $238,300
