Cullumber Company shows the following balances in selected accounts of its adjusted trial balance.
Supplies $31,100
Service Revenue $114,000
Supplies Expense 6,100
Salaries and Wages Expense 37,900
Accounts Receivable 11,000
Utilities Expense 8,700
Dividends 20,800
Rent Expense 17,400
Retained Earnings 80,000
Required:
1. Prepare the journal entries of above transactions.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u. s. company and i don’t make decisions based on what’s good for the u. s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?