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. Retained earnings
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. Retained earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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. Retained earnings
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