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Financial Accounting

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Income Statement Income Tax Expense

FINACT-GDREL5

Spa and Pool Company provides the following information at year-end before an adjustment for Income Tax Expense has been made:

Account Titles Adjusted Trial Balance
Debits Credits
Cash \$25,200
Accounts Receivable 35,750
Inventory 23,000
Accounts Payable \$15,500
Unearned Revenue 5,000
Common Stock 20,000
Retained Earnings 35,630
Sales Revenue 177,750
Dividend Revenue 3,000
Salaries Expense 27,180
Purchases 103,750
Rent Expense 16,000
Depreciation Expense 12,500
Interest Expense 13,500
Totals \$256,880 \$256,880


In addition, Spa and Pool Company uses the periodic system to record Inventory and the beginning balance in the Inventory account is \$25,900 this year.