Lemon Company provided the following account balances at year-end which had been adjusted except for income tax expense: Cash 600,000 Accounts receivable 3,500,000 Cost in excess of billings on long-term contracts Billings in excess of cost on long-term contracts Prepaid taxes Property, plant and equipment at carrying amount Note payable - noncurrent Share capital Share premium Retained earnings unappropriated Retained earnings restricted for note payable Earnings from long-term contracts Costs and expenses 1,600,000 700,000 450,000 1,510,000 1,620,000 750,000 2,030,000 900,000 160,000 6,680,000 5,180,000 All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax payments of P450,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is 30%.

Lemon Company provided the following account balances at year-end which had been adjusted except for income tax expense: Cash 600,000 Accounts receivable 3,500,000 Cost in excess of billings on long-term contracts Billings in excess of cost on long-term contracts Prepaid taxes Property, plant and equipment at carrying amount Note payable - noncurrent Share capital Share premium Retained earnings unappropriated Retained earnings restricted for note payable Earnings from long-term contracts Costs and expenses 1,600,000 700,000 450,000 1,510,000 1,620,000 750,000 2,030,000 900,000 160,000 6,680,000 5,180,000 All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax payments of P450,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is 30%.

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Please answer in good accounting form thankyou

7. At year-end, what amount should be reported as total shareholders' equity?

Lemon Company provided the following account balances at year-end which had been adjusted except for income tax
expense:
Cash
600,000
3,500,000
1,600,000
Accounts receivable
Cost in excess of billings on long-term contracts
Billings in excess of cost on long-term contracts
Prepaid taxes
Property, plant and equipment at carrying amount
Note payable – noncurrent
Share capital
Share premium
Retained earnings unappropriated
Retained earnings restricted for note payable
Earnings from long-term contracts
Costs and expenses
700,000
450,000
1,510,000
1,620,000
750,000
2,030,000
900,000
160,000
6,680,000
5,180,000
All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax
payments of P450,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is
30%.

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