The following balances are reflected in the records of Snakes-and-Ladders Company at the end of 2020. These amounts reflect balances after adjustments, but before the calculation of income tax expense. Accounts payable $281,700 Prepaid insurance $6,800 Property and equipment 672,500 Contributed capital 380,600 Cost of service expense 183,600 Other revenue
The following balances are reflected in the records of Snakes-and-Ladders Company at the end of 2020. These amounts reflect balances after adjustments, but before the calculation of income tax expense.
|
Accounts payable |
$281,700 |
Prepaid insurance |
$6,800 |
|
Property and equipment |
672,500 |
Contributed capital |
380,600 |
|
Cost of service expense |
183,600 |
Other revenue |
114,100 |
|
Supplies inventory |
216,900 |
Deferred revenue |
83,600 |
|
Service revenue |
904,000 |
|
57,750 |
|
Bonds payable |
229,600 |
|
607,550 |
|
Interest receivable |
4,300 |
Rent expense |
30,500 |
|
|
187,400 |
Cash |
351,340 |
|
Notes payable |
356,040 |
Accrued liabilities |
23,400 |
|
Investments |
146,400 |
Prepaid rent |
11,200 |
|
|
128,900 |
Administrative and general expense (includes interest, utilities, etc.) |
64,300 |
|
Supplies expense |
336,200 |
Income tax payable |
0 |
Required:
A) Calculate the income before income tax.
B) Calculate the income tax owed by the company if its tax rate is 40%.
C) Calculate the net income.
D) Prepare an adjusted
E) Prepare an Income Statement.
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