Financial Accounting
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The following trial balance of Scott Corp. at December 31, 2007 has been properly adjusted except for the income tax expense adjustment.
Scott Corp.
Trial Balance
December 31, 2007
Dr. Cr.
Cash $ 775,000
Accounts receivable (net) 2,695,000
Inventory 2,085,000
Property, plant, and equipment (net) 7,366,000
Accounts payable and accrued liabilities $ 1,701,000
Income taxes payable 654,000
Deferred income tax liability 85,000
Common stock 2,350,000
Additional paid-in capital 3,680,000
Retained earnings, 1/1/04 3,450,000
Net sales and other revenues 13,360,000
Costs and expenses 11,180,000
Income tax expenses 1,179,000
________ _________
$25,280,000 $25,280,000
Other financial data for the year ended December 31, 2007:
? 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, 2009.
? 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 Scott's December 31, 2007 balance sheet,
What is the current assets total?
What is the current liabilities total ?
What is the final retained earnings balance ?
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Current assets include cash, accounts receivables and inventory. For our purposes half of 1,200,000 is a long term asset because it will not be ...
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