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:

Cash

119,000

Inventory

122,000

Sales

960,000

Interest Expense

35,000

Notes Payable

126,000

Unearned Revenue

33,000

Retained Earnings (September 1, 2020)

6,325

Salaries Expense

110,000

Supplies Expense

25,000

Accounts Payable

45,000

Income tax Payable

6,175

Common shares

91,000

Accounts receivable

122,000

Cost of goods sold

722,000

Insurance expenses

12,500________

$ 1,267,500

$ 1,267,500

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.