Reference no: EM132888828
An entity provided the following adjusted balances at year-end:
Cash 550,000
Accounts receivable 1,650,000
Prepaid taxes 300,000
Accounts payable 200,000
Share capital 500,000
Share premium 600,000
Retained earnings 700,000
Translation adjustment - debit 500,000
Revenue 3,600,000
Expenses 2,600,000
During the current year, estimated tax payments of P300,000 were charged to prepaid taxes. The entity has not yet recorded income tax expense. There were no differences between financial income and taxable tax income and the tax rate is 30%. Included in accounts receivable is P500,000 due from a customer. Special terms granted to this customer require payment in equal semi-annual installments of P125,000 every April 1 and October 1.
Problem 1: What amount should be reported as total current assets?
a. 1,950,000
b. 2,500,000
c. 2,200,000
d. 2,250,000
Problem 2: What amount should be reported as total retained earnings?
a. 1,700,000
b. 1,400,000
c. 700,000
d. 900,000
Problem 3: What is the total shareholders' equity?
a. 2,500,000
b. 2,000,000
c. 1,800,000
d. 1,300,000