The following trial balance of Robertson Co. at December 31, 2020 has been adjusted except for income tax expense. Debit Credit Cash P 825,000 Accounts receivable 2,475,000 Prepaid taxes 525,000 Accounts payable P180,000 Share capital 750,000 Share premium 450,000 Retained earnings 945,000 Revenues 5,400,000 Expenses 3,900,000 _________ P7,725,000 P7,725,000 During 2020, estimated tax payments of P525,000 were charged to prepaid taxes. Robertson had not yet recorded income tax expense. There were no differences between financial statement and income tax income, and Robertson’s tax rate is 35%. Included in accounts receivable is P750,000 due from a customer. Special terms granted to this customer require payment in equal semi-annual installments of P187,500 every April 1, and October 1. In Robertson’s December 31, 2020 statement of financial position, what amount should be reported as total current assets? Group of answer choices P3,375,000 P3,750,000 P2,925,000 P3,300,000
16.
The following
|
|
Debit |
Credit |
|
Cash |
P 825,000 |
|
|
Accounts receivable |
2,475,000 |
|
|
Prepaid taxes |
525,000 |
|
|
Accounts payable |
|
P180,000 |
|
Share capital |
|
750,000 |
|
Share premium |
|
450,000 |
|
Retained earnings |
|
945,000 |
|
Revenues |
|
5,400,000 |
|
Expenses |
3,900,000 |
_________ |
|
|
P7,725,000 |
P7,725,000 |
During 2020, estimated tax payments of P525,000 were charged to prepaid taxes. Robertson had not yet recorded income tax expense. There were no differences between financial statement and income tax income, and Robertson’s tax rate is 35%. Included in accounts receivable is P750,000 due from a customer. Special terms granted to this customer require payment in equal semi-annual installments of P187,500 every April 1, and October 1.
In Robertson’s December 31, 2020
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