Answer
(a) Hershey foods have accrual accounting as the following adjustments have been made.
(b) Tootsie rolls have accrual accounting as the following adjustments have been made.
(c) Cash paid for income taxes during 2007 (11,343 dollars)
Work Step by Step
(a)
i) prepaid expenses - income statement account - expense account.
ii) defied income taxes - income statement account - income tax account.
(b)
i) dividend payable - income statement account - dividend account.
ii) accrued liabilities - income statement account - expense account.
(c)
income tex expense (provision) for 2007 (25,542 dollars)
income tax payable is reported in Current Liabilities
