The following trial balance of Robertson Co. at December 31, 2020 has been adjusted except for income tax expense.DebitCreditCashP 825,000Accounts receivable2.475.000Prepaid taxes525.000Accounts payableP180,000Share capital750.000Share premium450,000Retained earnings945,000Revenues5,400,000Expenses3.900,000---------P7,725,000 P7,725,000During 2020, estimated tax payments of P525.000 were charged to prepaid taxes. Robertson had not yet recorded income tax expense. There were no differences between fınancialstatement and income tax income, and Robertson's tax rate is 35%. Included in accounts receivable is P750,000 due from a customer. Special terms granted to this customer requirepayment in equal semi-annual installments of P187,500 every April 1, and October 1.In Robertson's December 31, 2020 statement of financial position, what amount should be reported as total current assets?O P2,925,000O P3,300,00oO P3,750,000O P3,375,000

Lets start with basic understanding of term current asset. Current asset are assets which are…

Answered: The following trial balance of…

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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Computing Financial Statement Measures The following pretax amounts are taken from the adjusted trial balance of Mastery Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Balance, retained earnings, December 31, 2019 $ 45,000 Sales revenue 300,000 Cost of goods sold 105,000 Selling expenses 36,000 Administrative expenses 34,000 Gain on sale of investments 10,000 Unrealized holding gain on debt investments, net of tax 4,250 Prior period adjustment, understatement of depreciation from prior period (2019) 20,000 Dividends declared and paid 16,000 Required Compute the following amounts for the year-end financial statements of 2020. Do not use negative signs with any of your answers. Round the per share amount to two decimal places. Item Amount a. Gross profit (2020). b. Operating income (2020). c. Net…
The following trial balance relates to Queenie as at 30 September 2019: RM'000RM'000 Revenue (note (i)) 312,890 Cost of sales 148,900 Distribution costs 42,125 Administrative expenses (note (ii))34,680 Loan note interest and dividend paid (notes (ii) and (iii)) 19,500 Investment income3200 Equity shares of 25 cents each 50,000 5% loan note (note (ii)) 30,000 Retained earnings at 1 October 20187,300 Plant and equipment at cost (note (iv)) 90,000 Accumulated depreciation at 1 October 2018: plant and equipment 32,400 Equity financial asset investments (note (v))40,000 Inventory at 30 September 201930,040 Trade receivables 42,900 Bank10,845 Current tax (note (vi)) 1,100 Deferred tax (note (vi)) 900 Trade payables23,400 460090460090 The following notes are relevant: (i) On 1 October 2018, Queenie sold one of its products for RM12 million (included in revenue in the trial balance). As part of the sale agreement, Queenie is committed to the ongoing servicing of this product until 30…
ces For the year just completed, Hanna Company had net income of $90,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable December 31 End of Year $ 55,000 $ 152,000 $ 451,000 $ 12,000 $ 356,000 $ 8,000 $ 35,000 Beginning of Year $ 83,000 $184,000 $ 343,000 $ 14,000 $ 400,000 $ 11,500 $ 27,000 The Accumulated Depreciation account had total credits of $58,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) +
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Accounts Payable$ 46,000 Accounts Receivable23, 800Cash (balance on January 1, 2021)90, 400Cash ( balance on December 31, 2021)78,000Common Stock152, 500 Dividends0Equipment137, 700Income Tax Expense10, 200Interest Expense 29, 600Inventory 17, 300Notes Payable25,000Office Expense 14, 400Prepaid Rent7, 100 Retained Earnings (beginning)6, 800Salaries and Wages Expense35, 800Service Revenue139,800 Utilities Expense25, 200Salaries and Wages Payable9, 000 Other cash flow information: Cash from issuing common stock$ 22,000Cash paid to reacquire common stock24, 500Cash paid for income taxes11, 100Cash paid to purchase long-term assets53, 400Cash paid to suppliers and employees84, 400Cash received from customers139,000 Prepare a statement of retained earnings for 2021.
The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the following adjusted trial balance: Account Balance ($) Notes Payable 20,000 Wages Payable 8,000 Additional Paid In Capital 300,000 Common Stock at par value 60,000 A/P 60,000 PP&E (at cost) 110,000 Inventory 62,000 Cash 419,000 Unearned Revenues 10,000 Accumulated Depreciation 10,000 Account Receivables ? Retained Earnings 230,000 During 2021 the following transactions occurred: A dividend of $20,000 was declared during 2021. These dividends will be paid in 2022. During the year the company performed and delivered services and billed its clients for $900,000. Collections from customers were $800,000. In addition to the transactions described in items 3 above, products were shipped to the customers who paid $10,000 in advance (see December 31, 2020 balances). The selling price was $80,000…
E6-5. Prepare Balance Sheet. Blackburn Building Products Company provided the following information for the current year ended December 31. Account Debit Credit Cash $ 645,235 Notes payable, due in 5 years $ 190,900 Retained earnings 857,735 Obligations under capital leases (noncurrent) 575,000 Obligations under pension plans 301,250 Deferred tax liability (noncurrent) 35,500 Accumulated other comprehensive loss 356,700 Current portion of long-term debt 356,800 Property, plant, and equipment-net 2,745,600 Investments in affiliate companies 567,500 (noncurrent) Accounts receivable 450,000 Bonds payable, due in 10 years 1,890,750 Investments at fair value (trading) 235,000 Accounts payable 500,000 Additional paid-in capital 710,300 Dividends payable 55,000 Equipment under capital lease 1,511,750 Intangible assets-net 205,700 Merchandise inventory 665,750 Income taxes payable 40,000 Common stock, $1 par value 1,870,000 Totals $7,383,235 $7,383,235 Required » a. Prepare the current-year…

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