The following trial balance of Reese Corp. at December 31, 2017 has been properly adjusted except for the income tax expense adj

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3 years ago

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The following trial balance of Reese Corp. at December 31, 2017 has been properly adjusted except for the income tax expense adj

ustment.Reese Corp.Trial BalanceDecember 31, 2017Dr. Cr.Cash $ 875,000 Accounts receivable (net) 2,695,000 Inventory 2,085,000 Property, plant, and equipment (net) 7,566,000 Accounts payable and accrued liabilities $ 1,761,000Income taxes payable 654,000Deferred income tax liability 85,000Common stock 2,350,000Additional paid-in capital 3,680,000Retained earnings, 1/1/17 3,490,000Net sales and other revenues 13,560,000Costs and expenses 11,180,000 Income tax expenses 1,179,000 $25,480,000 $25,480,000Other financial data for the year ended December 31, 2017:• Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2019.• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability.• During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%.In Reese's December 31, 2017 balance sheet,The current assets total is: ????The current liabilities total is: ????The final retained earnings balance is: ????

Business

1 answer:

Paul [167] · Answer 1 · 2022-04-23T03:40:01+03:00

Answer:

$5,055,000 TOTAL CURRENT ASSETS

$2,435,000 TOTAL CURRENT LIABILITIES

$4,691,000 Retained Earnings

Explanation:

2017 Balance Sheet

$875,000 Cash

$2,095,000 Accounts Receivable

$2,085,000 Inventories

$5,055,000 TOTAL CURRENT ASSETS

$7,566,000 Property, plant, and equipment

$600,000 Accounts Receivable

$8,166,000 TOTAL NONCURRENT ASSETS

$13,221,000 TOTAL ASSETS

$1,761,000 Accounts Payable

$20,000 Deferred Income Tax Liability

$654,000 Income Tax Payable

$2,435,000 TOTAL CURRENT LIABILITIES

$65,000 Deferred Income Tax Liability

$65,000 TOTAL NONCURRENT LIABILITIES

$2,500,000 TOTAL LIABILITIES

$2,350,000 Common Stock

$3,680,000 Paid in Capital

$4,691,000 Retained Earnings

$10,721,000 TOTAL EQUITY

$13,221,000 TOTAL EQUITY + LIABILITIES

Income Statement 2021

Sales $13.560,000

Cost and Expenses -$11.180,000

Net Income Before Taxes and Int $2.380,000

Interest Expenses -$1.179,000

Net Income Before Taxes $1.201,000