ACME Pest Control Services (organized as a corporation on September 1, 2003) has completed the accounting cycle

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ACME Pest Control Services (organized as a corporation on September 1, 2003) has completed the accounting cycle for the second year, ended August 31, 2005. ACME Pest Control also has completed a correct trial balance as follows:image text in transcribedimage text in transcribed

Required: 1. Complete the financial statements, as follows:

a. Income statement for the reporting year ended August 31, 2005. Include income tax expense, assuming a 30 percent tax rate. Use the following major captions: Revenues. Expenses, Pretax Income, Income Tax, Net Income, and EPS (list each item under these captions).

b. Balance sheet at the end of the reporting year, August 31, 2005. Include (1) income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings. Use the following captions (list each item under these captions).image text in transcribed 2. Give the journal entry to record income taxes for the year (not yet paid).

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Financial Accounting

ISBN: 9780070891739

1st Canadian Edition

Authors: Robert Libby

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