Maki and Leduc Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end August 31, 2021. The following information has been taken from the adjusted trial balance: Maki and Leduc Inc. has a 15% tax rate.
Instructions
a) Prepare a multi-step income statement and the required journal entry to adjust income tax expense.
b) Prepare a statement of retained earnings.
c) Prepare closing entries.

Question

Maki and Leduc Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end August 31, 2021. The following information has been taken from the adjusted trial balance:  Maki and Leduc Inc. has a 15% tax rate.
Instructions 
a) Prepare a multi-step income statement and the required journal entry to adjust income tax expense.
b) Prepare a statement of retained earnings.
c) Prepare closing entries.

Quizplus · Accepted Answer

The Answer of Maki and Leduc Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end August 31, 2021. The following information has been taken from the adjusted trial balance:  Maki and Leduc Inc. has a 15% tax rate.
Instructions 
a) Prepare a multi-step income statement and the required journal entry to adjust income tax expense.
b) Prepare a statement of retained earnings.
c) Prepare closing entries.