DM Corporation provided the following trial balance on December 31, 2X20 which had been adjusted, except for income tax expense: Cash 675,000 Accounts receivable (net) Inventory 2,695,000 2,185,000 Property, plant, and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax liability 10,245,000 1,800,000 1,500,000 750,000 Share capital Share premium Retained earnings, January 1 2,500,000 3,000,000 3,350,000 Net sales and other revenue 15,000,000 Cost and expenses 10,000,000 2,100,000 27,900,000 Income tax expense 27,900,000
DM Corporation provided the following trial balance on December 31, 2X20 which had been adjusted, except for income tax expense: Cash 675,000 Accounts receivable (net) Inventory 2,695,000 2,185,000 Property, plant, and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax liability 10,245,000 1,800,000 1,500,000 750,000 Share capital Share premium Retained earnings, January 1 2,500,000 3,000,000 3,350,000 Net sales and other revenue 15,000,000 Cost and expenses 10,000,000 2,100,000 27,900,000 Income tax expense 27,900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![DM Corporation provided the following trial balance on December 31, 2X20 which had been adjusted, except
for income tax expense:
Cash
675,000
2,695,000
2,185,000
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
10,245,000
1,800,000
1,500,000
750,000
2,500,000
3,000,000
3,350,000
Net sales and other revenue
15,000,000
Cost and expenses
10,000,000
2,100,000
Income tax expense
27,900,000
27,900,000
The accounts receivable included P1,000,000 due from customers and payable in quarterly installments of
P125,000. The last payment is due December 30, 2X22. During the year, the estimated tax payment of
P600,000 was charged to income tax expense. The income tax rate is 30% on all types of income.
Requirement: On December 31, 2X20, compute for (3 items x 5 points):
a. Total current assets
b. Total current liabilities
С.
Retained earnings](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F334f2db7-abb4-4f09-89e0-1c570925c4b6%2Ffc293376-da03-43bf-a74a-ed7ae97003a3%2F70r80u_processed.png&w=3840&q=75)
Transcribed Image Text:DM Corporation provided the following trial balance on December 31, 2X20 which had been adjusted, except
for income tax expense:
Cash
675,000
2,695,000
2,185,000
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
10,245,000
1,800,000
1,500,000
750,000
2,500,000
3,000,000
3,350,000
Net sales and other revenue
15,000,000
Cost and expenses
10,000,000
2,100,000
Income tax expense
27,900,000
27,900,000
The accounts receivable included P1,000,000 due from customers and payable in quarterly installments of
P125,000. The last payment is due December 30, 2X22. During the year, the estimated tax payment of
P600,000 was charged to income tax expense. The income tax rate is 30% on all types of income.
Requirement: On December 31, 2X20, compute for (3 items x 5 points):
a. Total current assets
b. Total current liabilities
С.
Retained earnings
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