An entity provided the following adjusted balances at year-end: Cash 550,000 Accounts receivable 1,650,000 Prepaid taxes 300,000 Accounts payable 200,000 Share capital 500,000 Share premium 600,000 Retained earnings 700,000 Translation adjustment – debit 500,000 Revenue 3,600,000 Expenses 2,600,000 During the current year, estimated tax payments of P300,000 were charged to prepaid taxes. The entity has not yet recorded income tax expense. There were no differences between financial income and taxable tax income and the tax rate is 30%. Included in accounts receivable is P500,000 due from a customer. Special terms granted to this customer require payment in equal semi-annual installments of P125,000 every April 1 and October 1. 6. What amount should be reported as total current assets? a. 1,950,000 b. 2,500,000 c. 2,200,000 d. 2,250,000 7. What amount should be reported as total retained earnings? a. 1,700,000 b. 1,400,000 c. 700,000 d. 900,000 8. What is the total shareholders’ equity? a. 2,500,000 b. 2,000,000 c. 1,800,000 d. 1,300,000
An entity provided the following adjusted balances at year-end:
Cash
550,000
1,650,000
Prepaid taxes
300,000
Accounts payable
200,000
Share capital
500,000
Share premium
600,000
700,000
Translation adjustment – debit
500,000
Revenue
3,600,000
Expenses
2,600,000
During the current year, estimated tax payments of P300,000 were charged to prepaid taxes. The entity has not yet recorded income tax expense. There were no differences between financial income and taxable tax income and the tax rate is 30%. Included in accounts receivable is P500,000 due from a customer. Special terms granted to this customer require payment in equal semi-annual installments of P125,000 every April 1 and October 1.
6. What amount should be reported as total current assets?
a. 1,950,000
b. 2,500,000
c. 2,200,000
d. 2,250,000
7. What amount should be reported as total retained earnings?
a. 1,700,000
b. 1,400,000
c. 700,000
d. 900,000
8. What is the total shareholders’ equity?
a. 2,500,000
b. 2,000,000
c. 1,800,000
d. 1,300,000
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