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7. Comprehensive Problem. Penny Company provided the following trial balance on December 31, 2017 which had been adjusted except for income tax expense: P Cash Accounts receivable (net) Inventory Property, plant and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax liability Share capital Share premium Retained earnings, January 1 Net sales and other revenue Costs and expenses Income tax expense Total current assets 1. Total current assets? a. P3,400,000 2. Total current liabilities? DO 700 000 600,000 2,800,000 2,000,000 10,500,000 The accounts receivable included P1,000,000 due from a customer and payable in quarterly installments of P125,000. The last payment is due December 30, 2019. b. P4,400,000 10,000,000 2,100,000 28,000,000 During the year, estimated tax payment of P600,000 was charged to income tax expense. The income tax rate is 30%. On December 31, 2017, what amount should be reported as na 300.000 1,800,000 1,500,000 700,000 2,500,000 3,000,000 3,500,000 15,000,000 c. P5,400,000 28,000,000 D4.050.000 d. P4,900,000 D2 450.000

7. Comprehensive Problem. Penny Company provided the following trial balance on December 31, 2017 which had been adjusted except for income tax expense: P Cash Accounts receivable (net) Inventory Property, plant and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax liability Share capital Share premium Retained earnings, January 1 Net sales and other revenue Costs and expenses Income tax expense Total current assets 1. Total current assets? a. P3,400,000 2. Total current liabilities? DO 700 000 600,000 2,800,000 2,000,000 10,500,000 The accounts receivable included P1,000,000 due from a customer and payable in quarterly installments of P125,000. The last payment is due December 30, 2019. b. P4,400,000 10,000,000 2,100,000 28,000,000 During the year, estimated tax payment of P600,000 was charged to income tax expense. The income tax rate is 30%. On December 31, 2017, what amount should be reported as na 300.000 1,800,000 1,500,000 700,000 2,500,000 3,000,000 3,500,000 15,000,000 c. P5,400,000 28,000,000 D4.050.000 d. P4,900,000 D2 450.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the correct answer to number 1 and 2? Provide a solution.
7. Comprehensive Problem. Penny Company provided the following trial balance on December 31, 2017 which had been adjusted except for income tax expense: Cash P Accounts receivable (net) Inventory Property, plant and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax liability Share capital Share premium Retained earnings, January 1 Net sales and other revenue Costs and expenses Income tax expense Total current assets 1. Total current assets? a. P3,400,000 2. Total current liabilities? a. P2,700,000 600,000 2,800,000 b. P4,400,000 2,000,000 10,500,000 10,000,000 2,100,000 P28,000,000 The accounts receivable included P1,000,000 due from a customer and payable in quarterly installments of P125,000. The last payment is due December 30, 2019. b. P3,300,000 During the year, estimated tax payment of P600,000 was charged to income tax expense. The income tax rate is 30%. On December 31, 2017, what amount should be reported as 1,800,000 1,500,000 700,000 c. P5,400,000 2,500,000 3,000,000 3,500,000 15,000,000 P28,000,000 c. P4,050,000 d. P4,900,000 d. P3,450,000
Transcribed Image Text:7. Comprehensive Problem. Penny Company provided the following trial balance on December 31, 2017 which had been adjusted except for income tax expense: Cash P Accounts receivable (net) Inventory Property, plant and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax liability Share capital Share premium Retained earnings, January 1 Net sales and other revenue Costs and expenses Income tax expense Total current assets 1. Total current assets? a. P3,400,000 2. Total current liabilities? a. P2,700,000 600,000 2,800,000 b. P4,400,000 2,000,000 10,500,000 10,000,000 2,100,000 P28,000,000 The accounts receivable included P1,000,000 due from a customer and payable in quarterly installments of P125,000. The last payment is due December 30, 2019. b. P3,300,000 During the year, estimated tax payment of P600,000 was charged to income tax expense. The income tax rate is 30%. On December 31, 2017, what amount should be reported as 1,800,000 1,500,000 700,000 c. P5,400,000 2,500,000 3,000,000 3,500,000 15,000,000 P28,000,000 c. P4,050,000 d. P4,900,000 d. P3,450,000
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