The one adjusting entry that has not yet been recorded is income tax expense for the...

The one adjusting entry that has not yet been recorded is income tax expense for the month of September. Determine this entry and add it to the trial balance. Assume the company has an effective tax rate of 35%.
Prepare each financial statement, in good form, using Excel. Good form means you should have an appropriate three-part heading, no abbreviations, and dollar signs and underscores in appropriate places. You should be proud to hand these financial statements to your banker. Use the financial statements in the Accounting Cycle Review PowerPoint file from the first day of class as a guide with the following modifications:

Superior Office Supply
General Ledger Trial Balance
As of September 30, 2019
		Balance
Account #	Description	Dr.	Cr.
1010	Savings Account	$70,852.50
1020	Checking Account	25,684.65
1030	Certificate of Deposit	10,000.00
1100	Accounts Receivable	212,561.58
1150	Allowance for Doubtful Accounts		$14,500.00
1200	Inventory	179,854.65
1400	Prepaid Expenses	6,200.00
1500	Land	160,000.00
1550	Building	511,000.00
1600	Equipment	1,050,657.00
1900	Accumulated Depreciation - Building & Equipment		329,359.00
2000	Accounts Payable		232,421.24
2310	Sales Tax Payable		19,685.32
2330	Federal Payroll Taxes Payable		16,834.56
2340	FUTA Payable		8,880.76
2360	SUTA Payable		2,225.64
2380	Income Taxes Payable		-
2500	Dividends Payable		45,000.00
2550	Notes Payable		15,667.34
2600	Current Portion of Long Term Debt		58,695.00
2700	Long Term Debt		338,654.52
3910	Common Stock		150,000.00
3930	Retained Earnings		278,527.86
3980	Dividends Declared	45,000.00
4000	Gross Sales Revenue		2,369,320.73
4050	Sales Discounts	265,889.43
5000	Cost of Goods Sold	910,978.54
6000	Salaries and Wage Expense	245,853.13
6100	Payroll Tax Expense	20,813.35
6200	Advertising Expense	134,186.32
6300	Bad Debt Expense	21,148.71
7000	Interest Expense	24,695.84
8000	Gain (loss) on Sale of Equipment		15,603.73
9000	Income Tax Expense	-
		$3,895,375.70	$3,895,375.70

Expert Solution

Prepare income statement as follows:

Superior Office Supply
Income Statement
For the Month Ended September 30, 2019
Particulars	Amount	Amount
Revenues
Gross Sales Revenue	$2,369,320.73
Less: Sales Discounts	$265,889.43
Net Sales Revenue		$2,103,431.30
Cost of Goods Sold		$910,978.54
Gross Margin		$1,192,452.76
Operating expenses
Salaries and Wage Expense	$245,853.13
Payroll Tax Expense	$20,813.35
Advertising Expense	$134,186.32
Bad Debt Expense	$21,148.71
Total operating expenses		$422,001.51
Income from Operations		$770,451.25
Other Income (Expenses)
Interest Expense	($24,695.84)
Gain (loss) on Sale of Equipment	$15,603.73
Total other income (Expenses)		($9,092.11)
Income Before Taxes		$761,359.14
Income Tax Expense ($761,359.14 × 35%)		$266,475.70
Net income		$494,883.44

Prepare statement of retained earnings as follows:

Superior Office Supply
Statement of Retained Earnings
For the Month Ended September 30, 2019
Retained Earnings, September 1		$278,527.86
Add: Net income		$494,883.44
		$773,411.30
Less: Dividends		$45,000.00
Retained Earnings, September 30		$728,411.30

Prepare the balance sheet as follows:

Superior Office Supply
Balance sheet
September 30, 2019
Assets	Amount	Amount
Current Assets
Cash and Cash Equivalents		$106,537.15
Accounts Receivable	$212,561.58
Less: Allowance for Doubtful Accounts	$14,500.00	$198,061.58
Inventory		$179,854.65
Prepaid Expenses		$6,200.00
Total Current Assets		$490,653.38
Property, Plant and Equipment
Land		$160,000.00
Building	$511,000.00
Equipment	$1,050,657.00
Less: Accumulated Depreciation - Building & Equipment	($329,359.00)	$1,232,298.00
Total assets		$1,882,951.38
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$232,421.24
Sales Tax Payable	$19,685.32
Federal Payroll Taxes Payable	$16,834.56
Federal Unemployment Tax Payable	$8,880.76
State Unemployment Tax Payable	$2,225.64
Income Taxes Payable	$266,475.70
Dividends Payable	$45,000.00
Notes Payable	$15,667.34
Current Portion of Long Term Debt	$58,695.00
Total Current Liabilities		$665,885.56
Long-Term Liabilities
Long-term debt		$338,654.52
Total Liabilities		$1,004,540.08
Stockholders' Equity
Common Stock	$150,000.00
Retained Earnings	$728,411.30
Total Stockholders' Equity		$878,411.30
Total Liabilities and Stockholders Equity		$1,882,951.38

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Is Income tax expense or a profit-sharing?

Question