1. prepare income statement 2. prepare journal entry to record income tax expense.

Metlock Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2021. The following information has been taken from the adjusted trial balance: Accounts payable $ 26,000 Interest expense $ 5,000 Cash dividends-common 55,000 Notes payable 115,000 Common shares 200,000 Retained earnings (Aug. 1, 2020) 328,600 4 Cost of goods sold 317,000 Salaries expense 138,500 Dividends payable 14,800 Sales 666,500 Income tax expense 32,000 Supplies expense 11,500 Income tax payable 2,400 Unearned revenue 11,700 All accounts have normal balances and total assets equal $ 806,000. Metlock has a 20% income tax rate