Friday, 15 July 2016

The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue 390,000 Loss on sale of investments 40,000 Interest revenue 8,500 Cost of goods sold 205,000 General and administrative expenses 49,000 Restructuring costs 59,000 Selling expenses 29,500 Income tax expense 0 Income tax expense has not yet been recorded. The income tax rate is 40%.

The following is a partial year-end adjusted trial balance.

  Account Title Debits Credits
  Sales revenue   390,000
  Loss on sale of investments 40,000    
  Interest revenue   8,500  
  Cost of goods sold 205,000    
  General and administrative expenses 49,000    
  Restructuring costs 59,000    
  Selling expenses 29,500    
  Income tax expense 0    


Income tax expense has not yet been recorded. The income tax rate is 40%.

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Explanation: