DM Corporation provided the following trial balance on December 31, 2X20 which had been adjusted, exceptfor income tax expense:Cash675,0002,695,0002,185,000Accounts receivable (net)InventoryProperty, plant, and equipment (net)Accounts payable and accrued liabilitiesIncome tax payableDeferred tax liabilityShare capitalShare premiumRetained earnings, January 110,245,0001,800,0001,500,000750,0002,500,0003,000,0003,350,000Net sales and other revenue15,000,000Cost and expenses10,000,0002,100,000Income tax expense27,900,00027,900,000The accounts receivable included P1,000,000 due from customers and payable in quarterly installments ofP125,000. The last payment is due December 30, 2X22. During the year, the estimated tax payment ofP600,000 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 assetsb. Total current liabilitiesС.Retained earnings

Retained earnings: It is the part of the profit that is not distributed to the shareholders and kept…

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

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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Ff
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) 2,695,000 Inventory 2,185,000 Property, plant, and equipment (net) 10,245,000 Accounts payable and accrued liabilities 1,800,000 Income tax payable 1,500,000 Deferred tax liability 750,000 Share capital 2,500,000 Share premium 3,000,000 Retained earnings, January 1 3,350,000 Net sales and other revenue 15,000,000 Cost and expenses 10,000,000 Income tax expense 2,100,000 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 the ff. a. Total current assets b. Total current liabilities c.…