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The Following Data Are for the Grass Is Greener Company

Question 108

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The following data are for the Grass is Greener Company at the end of 2017,after adjustments,except for the calculation of income tax expense.
Accounts payable  Property and equipment  Cost of service expense  Supplies  Service revenue Bonds payable  Interest receivable Retained earnings  Notes payable Investments  Accumulated depreciation  Supplies expense $281,700672,500183,600216,900904,000229,6004,300187,400356,040146,400128,900336,200 Prepaid insurance  Contributed capital  Other revenue Deferred revenue  Depreciation expenseAccounts receivable  Rent expense  Cash Accrued liabilities Prepaid rent Administrative and general expense (includes interest, utilities, etc.)  Income tax payable $6,800380,600114,10083,60057,750607,55030,500351,34023,40011,20064,3000\begin{array}{c}\begin{array}{|l|}\hline \text {Accounts payable } \\\hline \text { Property and equipment } \\\hline \text { Cost of service expense } \\\hline \text { Supplies } \\\hline \text { Service revenue } \\\hline \text {Bonds payable } \\\hline \text { Interest receivable } \\\hline \text {Retained earnings } \\\hline \text { Notes payable} \\\hline \text { Investments } \\\hline \text { Accumulated depreciation } \\\hline \text { Supplies expense } \\\hline \end{array}\begin{array}{r|}\hline\$ 281,700 \\ \hline 672,500 \\\hline 183,600 \\\hline 216,900 \\\hline 904,000 \\\hline 229,600 \\\hline 4,300 \\\hline 187,400 \\\hline 356,040 \\\hline 146,400 \\\hline 128,900\\\hline336,200\\\hline\end{array}\begin{array}{l|}\hline \text { Prepaid insurance } \\\hline \text { Contributed capital } \\\hline \text { Other revenue } \\\hline \text {Deferred revenue } \\\hline \text { Depreciation expense} \\\hline \text {Accounts receivable } \\\hline \text { Rent expense } \\\hline \text { Cash} \\\hline \text { Accrued liabilities} \\\hline \text { Prepaid rent} \\\hline \text { Administrative and general expense (includes interest, utilities, etc.) } \\\hline \text { Income tax payable } \\\hline \end{array}\begin{array}{|r|}\hline \$ 6,800 \\\hline 380,600 \\\hline 114,100 \\\hline 83,600 \\\hline 57,750 \\\hline 607,550 \\\hline 30,500 \\\hline 351,340 \\\hline 23,400 \\\hline 11,200 \\\hline 64,300 \\\hline 0\\\hline\end{array}\end{array}

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 trial balance.
E)Prepare an income statement.

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blured image_TB6814_00 D. blured image_TB6814_00 E. GRASS Is cRE...

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