Maki and Levesque Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end August 31, 2016. The following information has been taken from the adjusted trial balance: Maki and Levesque 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 Levesque Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end August 31, 2016. The following information has been taken from the adjusted trial balance:  Maki and Levesque 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 Levesque Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end August 31, 2016. The following information has been taken from the adjusted trial balance:  Maki and Levesque 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.