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 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.
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 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- An entity provided the following adjusted balances at year-end:
|
Cash |
550,000 |
Share premium |
600,000 |
|
Accounts receivable |
1,650,000 |
|
700,000 |
|
Prepaid taxes |
300,000 |
Translation adjustment-debit |
500,000 |
|
Accounts payable |
200,000 |
Revenue |
3,600,000 |
|
Share capital |
500,000 |
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 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.
- What amount should be reported as total current assets?
- 1,950,000 2,200,000
- 2,500,000 2,250,000
- What amount should be reported as total retained earnings?
- 1,700,000 700,000
- 1,400,000 900,000
- What is the total shareholders’ equity?
- 2,500,000 1,800,000
- 2,000,000 1,300,000
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