Refer to the information in E18-13 for Melissa Inc. Assume that the company follows the taxes payable

Question:

Refer to the information in E18-13 for Melissa Inc. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Melissa Inc. made tax instalment payments of $42,000.
Instructions
(a) Calculate the taxable income and income tax expense for the year ended December 31, 2014.
(b) Prepare the journal entry(ies) to record income taxes at December 31, 2014.
(c) Prepare the income statement for 2014, beginning with the line "Income before income tax."
(d) Provide the presentation for any resulting income tax accounts at December 31, 2014.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...