Question

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

Answer 1

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