What amount should be reported as total retained earnings

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Question - Escudero Company provided the following adjusted balances on December 31, 2022, except for income tax expense.

Cash P550,000

Accounts receivable 1,650,000

Prepaid taxes 300,000

Accounts payable 120,000

Share capital 500,000

Share premium 680,000

Retained earnings 630,000

Foreign currency translation adjustment - debit 430,000

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 statement and income 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. On December 31, 2022, what amount should be reported as total retained earnings?

Reference no: EM133150171

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