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Splish Brothers Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July $31,2024.$

The following information has been taken from the adjusted trial balance:

All accounts have normal balances and total assets equal $$964,650.$ Splish Brothers has a $20\%$ income tax rate.

$($a$1)$

Prepare a multiple$-$step income statement.

SPLISH BROTHERS INC.

Income Statement

Sarasota Corporation is authorized to issue common and $$3$ convertible preferred shares. Each preferred share is convertible into four

common shares. On July $2,$ the company issued $110,000$ preferred shares for $$110$ per share. The common shares were trading at

$$25\mathrm{.}00$ on September $7,$$$27\mathrm{.}50$ on September $19,$ and $$29\mathrm{.}00$ on September $28.$

Journalize the conversion of the preferred shares on September $19.($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry

before credit entry.$)$

Date

Account Titles

Debit

Credit

Sept. $19$

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List of Accounts