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.
Definitions:
Sherman Act
A landmark federal statute in the field of United States antitrust law passed in 1890 to prohibit monopolies and restrict business practices that reduce market competition.
Monopolization
The process or state by which a single company gains exclusive control over a market, eliminating competition, and often leading to higher prices and reduced quality for consumers.
Tying Agreements
Contracts where the sale of one product (the tying product) is contingent upon the purchase of a second, distinct product (the tied product).
Manufacturers
Entities or individuals involved in the transformation of raw materials or components into finished goods, often utilizing machinery, labor, and efficient production processes.
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