View the step-by-step solution to: 51. The following trial balance of Reese Corp. at December 31,

This question was answered on Sep 30, 2011. View the Answer
51. The following trial balance of Reese Corp. at December 31, 2012 has been properly adjusted except for the income tax expense adjustment.
Reese Corp
Trial Balance
December 31, 2012
  Dr. Cr.
Cash $975,000  
Accounts receivable (net) 2,695,000  
Inventory 2,085,000  
Property, plant, and equipment (net) 7,366,000  
Accounts payable and accrued liabilities   $1,801,000
Income taxes payable   645,000
Deferred income tax liability   85,000
Common stock   2,350,000
Additional paid-in capital   3,680,000
Retained earnings, 1/1/12   3,450,000
Net sales and other revenues   13,460,000
Costs and expenses 11,180,000  
Income tax expenses 1,179,000  
  $25,480,000 $25,480,000
     

Other financial data for the year ended December 31, 2012: (1) 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, 2014. (2) 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. (3) 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, 2012 balance sheet, the current assets total is
A) $5,605,000.
B) $5,155,000.
C) $6,280,000.
D) $5,755,000.
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Dear Student Please find... View the full answer

Accounting.xls

Solution
The current assets given are as follows :
Cash
Accounts Receivabel
Inventory
Total :

975000
2695000
2085000
5755000

Current Assets after adjustment as on 31/12/2012 will be :
Cash...

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