Problem 2-21 (AICPA Adapted) Mint Company provided the following account balances on December 31, 2021 which had been adjusted except for income tax expense: Cash Accounts receivable, net Cost in excess of billings on long-term contracts Billings in excess of cost on long-term contracts Prepaid taxes Property, plant, and equipment, net Note payable - noncurrent Share capital Share premium Retained earnings unappropriated Retained earnings restricted for note payable Earnings from long-term contracts Costs and 3,600,000 3,500,000 1,500,000 700,000 800,000 4,000,000 3,500,000 2,000,000 800,000 1,400,000 1,000,000 9,000,000 5,000,000 expenses All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax payments of P800,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is 30%. On December 31, 2021, what amount should be reported as 1. Total retained earnings? a. 2,400,000 b. 5,200,000 c. 6,400,000 d. 4,200,000 2. Total current liabilities? a. 1,100,000 b. 1,900,000 c. 700,000 d. 400,000 3. Total current assets? a. 9,400,000 b. 7,900,000 c. 8,600,000 d. 7,100,000

Problem 2-21 (AICPA Adapted) Mint Company provided the following account balances on December 31, 2021 which had been adjusted except for income tax expense: Cash Accounts receivable, net Cost in excess of billings on long-term contracts Billings in excess of cost on long-term contracts Prepaid taxes Property, plant, and equipment, net Note payable - noncurrent Share capital Share premium Retained earnings unappropriated Retained earnings restricted for note payable Earnings from long-term contracts Costs and 3,600,000 3,500,000 1,500,000 700,000 800,000 4,000,000 3,500,000 2,000,000 800,000 1,400,000 1,000,000 9,000,000 5,000,000 expenses All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax payments of P800,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is 30%. On December 31, 2021, what amount should be reported as 1. Total retained earnings? a. 2,400,000 b. 5,200,000 c. 6,400,000 d. 4,200,000 2. Total current liabilities? a. 1,100,000 b. 1,900,000 c. 700,000 d. 400,000 3. Total current assets? a. 9,400,000 b. 7,900,000 c. 8,600,000 d. 7,100,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...

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